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2010 (9) TMI 833 - HC - Income TaxLocal authority - whether the petitioner is not a "local authority" within the meaning of sub-section (20) of section 10 of the Income-tax Act, 1961 and is, therefore, not entitled to the benefit of certificate for deduction at lower rate of tax within the meaning of section 197 of the Central Act - Held that:- The main sources of the funds of the authority are the Bihar Government and the Central Government. Its power to spend is subject to the budget provisions of the State Government, and/or any other directions issued by it. The authority's budget is subject to approval of the State Government. It is thus evident that the control and management of the funds available to it is not vested in it, and it is on a tight leash. It is entirely controlled by the State Government. Thus on a survey of the provisions of the Bihar Act, it is of the view that the petitioner does not appear to be a local authority within the meaning of sub-section (20) of section 10 of the Act. Appeal dismissed.
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