9911796707
TMI Blog2012 (5) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner of Income Tax, Circle 6 (1), Hyderabad in issuing the garnishee notice dated 30-3-2012 under Section 226 (3) of the Income Tax Act, 1961 in F.No.AABCH36591/226(3)/AC-6(1)/11-12) to the 3 rd respondent herein attaching the P.D Account GA 09 (2/287) of the petitioner Board maintained with the State Bank of Hyderabad, Treasury Branch, Gunfoundry, Hyderabad/4 th respondent herein for recovery of disputed tax of Rs.29,42,47,025/- allegedly due from the petitioner Board as illegal, arbitrary, unreasonable and against the provisions of the Income Tax Act, 1961 and to direct the 1 st respondent herein/Assistant Commissioner of Income Tax, Circle 6 (1), Hyderabad not to insist upon for payment of the said disputed tax till the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The Assessing Officer referred the matter for special audit under Section 142 (2A), and after receiving the audit report, the assessment order was passed determining the income at Rs.43,16,07,010/-. Various issues have been raised contending that the case of the petitioner Board falls under proviso to Section 147, but the Assessing Officer had erroneously relied on the internal audit, and therefore, there is a factual error on the part of the Assessing Officer in assessing the same. We are not concerned with various grounds raised in the appeal filed before the Commissioner of Income Tax (Appeals)-IV, Hyderabad as it is for the appellate authority to appreciate the said contentions and pass appropriate orders. It is not in dispute that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the activities of the Municipal Corporation have become unmanageable, part of its functions relating to the supply of Water and maintenance of sewerage has been separated by enacting the Hyderabad Metropolitan Water Supply and Sewerage Board Act, 1989. It is stated that the petitioner Board is not a profit making organization and is meant for the public utility. It is stated that hitherto the local authorities are exempted from the provisions of the Income Tax Act, 1961, but only pursuant to the amendment of Section 10 (20) of Finance Act, 2002 with effect from 1-4-2003, the Panchayats as defined in Clause (d) of Article 243, municipalities as defined in Clause (e) of Article 243 (p), Municipal Committee and the District Board, Cantonme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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