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2017 (2) TMI 919 - AT - Income TaxIncome from property of the assessee authority - assessee being a State - immunity from tax under Article 289(1) of the Constitution - whether could be said to be income from property of the State and if so whether the same is derived from trade or business carried out by it? - Held that:- The facts in the present case are identical to that in Vidharba Housing Society (1972 (2) TMI 23 - BOMBAY High Court ) and the decision rendered therein squarely applies in the present case moreso when no other decision on identical facts favouring the assessee was brought to our notice. We, therefore, have no hesitation in holding that the assessee authority could not be termed to be an extension of the State. Even the arguments of the Ld. counsel for the assessee that it is the substance which is relevant for determining the case of the assessee and not form, is defeated by the relevant clauses reproduced above, which clearly point out that even in substance the assessee was not an extension of the State. Having said so, the question of granting immunity under Article 289 of the Constitution does not arise at all. Even the Hon'ble Apex Court in Adityapur Industrial Area Development Authority Vs. UOI, (2006 (5) TMI 61 - SUPREME Court ) read the relevant clauses of the authority in that case, which we find are identical to that in the assessee's case and held it to be a distinct entity separate from the State. The Apex Court further held that the exemption otherwise specifically provided to the assessee authority under section 10(20A)/10(20) having been expressly taken away there was no merit in the contention of the assessee. Thus the assessee is distinct and separate from the State and thus not entitled to claim exemption from taxation under Article 289 of the Constitution. - Decided against assessee.
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