TMI Blog2009 (7) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... on is allowed. - 3795 of 2009 - - - Dated:- 20-7-2009 - S. K. SI NGH ACTG. C. J. and SMT. ANJNA PRAKASH J. A. K. Rastogi and Satyabir Bharti for the petitioner. Harshwardhan Prasad and Smt. Archana Sinha for respondents Nos. 1 and 2 and Ms. Nilu Agrawal for respondent Nos. 10 and 11. JUDGEMENT Heard the parties. 2. It is the case of the petitioner that this authority (petitioner) was constituted on April 21, 2006, under the Bihar State Infrastructure Development Enabling Act, 2006, for the purpose of acting as the nodal agency of the State for developing the basic infrastructure in the State of Bihar. It is accepted to be a facilitator in public private partnership projects. 3. Annexure 1 to the writ petition i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d noted even in the impugned order, contained in annexure 4, the interest money to be received by the petitioner on account of FOR in banks belongs to the State of Bihar and it exempted from tax on income under article 289 of the Constitution of India. 5. In support of his submissions learned counsel for the petitioner has placed reliance upon a judgment of the Delhi High Court in the case of CIT v. Delhi State Industrial Development [2007] 295 ITR 419 and another judgment by the Karnataka High Court in the case of CIT v. Karnataka Urban Infrastructure Development and Finance Corporation [2006] 284 ITR 582. 6. Learned counsel appearing on behalf of the Commissioner and other concerned authorities of the Income-tax Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgments relied upon by the learned counsel for the petitioner appear to be relevant and the principles settled therein should have been taken into consideration by the income-tax authorities while passing the order under section 197 or under section 264 of the Income-tax Act. 8 . Prima facie, this court finds merit in the claim of the petitioner that the interest income over money belonging to the State of Bihar cannot be subjected to income-tax or TDS by the income-tax authorities. However, since the assessment orders have not been passed in respect of the petitioner for the relevant years, hence this court would not like to give a definite and positive finding over the issues involved, at this stage. Hence, the orders contained in an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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