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2016 (7) TMI 1392 - HC - Income TaxUPSIDC treated as a "local authority" under Section 10(20) of Act, 1961 - Held that:- The word "development" under Section 10(20A) of Act, 1961 should be understood in its wide sense. There is no warrant to exclude all development programmes relating to an industry from purview of the word "development" in the said sub-section. There is no indication in Act, 1961 that development envisaged should confine to non-industrial activities. Development of a place can be accelerated through varieties of schemes and establishment of an industry is one of the modes for developing an area. Court also observed that the purpose of granting exemption from income-tax to certain authorities under Section 10(20A) of Act, 1961 is to protect public bodies, created under law, for achieving the purpose of developing urban or rural areas, for public good. When object is such, an interpretation which would preserve it should be accepted even if the provision is capable of more than one interpretation. We answer all the questions against appellant- assessee and in favour of Revenue by holding that since UPSIDC is a company incorporated under Act, 1956 and not an authority constituted by or under any enactment in India, therefore, is not entitled for claiming exemption under Section 10(20A) of Act, 1961.
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