TMI Blog1983 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... UP Panchayat Raj Act, 1947 ('the 1947 Act') and its income being for the purposes of planning and development of 'gaon sabhas' who constituted the membership of the assessee-udyog. This stand of the assessee has been rejected both by the ITO and the AAC on the ground that neither the assessee is an authority constituted in India by or under the authority of any law nor was its income earmarked for the purposes of planning, development or improvement of the villages. 3. In the appeal before the Tribunal the learned counsel for the assessee, Mr. Agnihotri, took the Tribunal through the scheme of the 1947 Act as disclosed by the preamble thereto and the provisions of sections 2, 3, 15, 16, 17, 18, 19, 19A, 20 and 30 and urged that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anning, development or improvement of cities, towns and villages, or for both. The short point for decision in this appeal is as to whether these conditions are satisfied in the present case. The stand of the revenue is that these conditions are not satisfied. According to the assessee, these conditions are satisfied. 5. The assessee has been set up by virtue of section 30 of the 1947 Act which lays down that subject to such rules as may be prescribed, two or more 'gaon sabhas' may combine by means of written instrument to appoint a joint committee consisting of their representatives for the purpose of transacting any business in which they are jointly interested and may-- (a) delegate to such committee power, with such conditions as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er for drinking purposes, washing and bathing purposes and regulation of sources of water supply for drinking, regulating the construction of a new building or the extension or alteration of any existing building, assisting the development of agriculture, commerce and industry, the administration of civil and criminal justice, allotment of places for storing manure and for tanning and curing of hides, the maintenance and control of class I and Kaiser-I-Hind forests, waste land, water channels and drinking places in the hill patties of the Kumaon Division ; construction, repair and maintenance of such small irrigation projects of such classes or types thereof as may be specified by the State Government by general or special order in this beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those specified in Chapter III (sections 30 and 41) shall be exercised, performed or discharged by the gaon panchayat and not otherwise. 6. This takes us to section 30 which has already been reproduced above. Pursuant to the powers conferred on two or more gaon sabhas under section 30, the assessee-udyog was brought into existence by virtue of the agreement amongst 31 gaon sabhas, namely Madena, Mind, Mal, Chinora, Dangibala, etc., detailed at : (a) in the bye-laws of the udyog it page 18 of the paper book. As envisaged in section 30, the assessee-udyog, pursuant to the powers conferred on the gram panchayats concerned, has been appointed and constituted by the gaon sabhas concerned by means of a written instrument. Since the assessee-ud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , its office-bearers, functions of the assessee, etc. Since one of the aims and objects of the assessee-udyog is 'to endeavour all-round development of the block area' as brought out above, it can be safely said that this aim and object of the assessee-udyog is wide enough for us to hold that the assessee-udyog has been constituted in India under the 1947 Act for the purpose of planning, development or improvement of the villages within its block area. Further keeping in view the said bye-laws as also the preamble of the 1947 Act and the powers of the gaon panchayat, brought out by us above, the assessee-udyog is an authority constituted in India under law for the purpose of planning, development and/or improvement of villages in its block. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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