TMI Blog2010 (5) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... for the sake of convenience. 3. The common grounds raised in both the appeals are as under:- 1) The learned Assessing Officer has erred in law and fact of the case by treating the appellant as AOP than local Authority and thus assessing the income on the basis of AOP, but no where in the orders the Assessing Officer has substantiated on what ground the appellant is to be treated as AOP. The orders of the learned Assessing Officer is contrary to the law, equity and justice and facts and material on record, devoid of jurisdiction arbitrary based on conjectures and surmise. Since as per explanation as inserted in the Income Tax Act w.e.f. 1.4.2003, the appellant is in control and management of Local fund and qualifies to be treated as l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions and perused the records. Under the provisions of section 10(20) of the Act, the income of a local authority is exempt from tax. The Finance Act 2002 w.e.f. 1.4.2003 had inserted an Explanation u/s 10(20) of the Act defining local authority which reads as under:- Explanation.-For the purposes of this clause, the expression local authority means- (i) Panchayat as referred to in clause (d) of article 243 of the Constitution; or (ii) Municipality as referred to in clause (e) of article 243P of the Constitution; or (iii) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with, the control or management of a Municipal or local fund; or (iv) Cantonment Board as defined in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10(20) of the Act. The Learned AR for the assessee fairly agreed that the issue is covered by the ratio laid down by the Chandigarh Bench of the Tribunal in the case of Agricultural Produce Market Committee, Solan. In the totality of facts and circumstances of the case we hold that the assessee is not a local authority entitled to the benefit of exemption us/ 10(20) of the Act. Hence, the common ground of appeal raised by the assessee in all the appeals is rejected. 7. The facts of the present case being identical to the facts in Assessment Years 2003-04 to 2005-06 and respectfully following the ratio laid down by the Tribunal in assessee s own case relating to Assessment Years 2003-04 to 2005-06, we hold that the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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