HIGH COURT OF MADRAS

Commissioner of Income-tax

v.

State Industries Promotion Corpn. of Tamil Nadu Ltd.

K. Raviraja Pandian and P.P.S. Janarthana Raja, JJ.

Tax Case (Appeal) Nos. 205, and 112 to 114 of 2004

July 24, 2007

Section 10(20A) of the Income-tax Act, 1961 - Housing boards or authority - Assessment year 1992-93 - Whether where assessee was not an authority constituted in India by or under any law enacted either for purpose of dealing with and satisfying need for housing accommodation or for purpose of planning, development or improvement of cities, towns and villages, or for both, it could not claim benefit under section 10(20A), though it might come with later part of provisions of said section - Held, yes

FACTS

The assessee, a State Government undertaking engaged in the promotion of industrial activities and making provision for infrastructure to industries, claimed exemption under section 10(20A) but the same was denied by the Assessing Officer. On appeal, the Commissioner (Appeals) partly allowed the same. On further appeal, the Tribunal held that exemption would not be available to the assessee.

On appeal to the High Court:

HELD

It was an admitted case that the assessee was not an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both. It was also an admitted case that the assessee had been incorporated under the provisions of the Companies Act, 1956. Hence, the assessee could not claim the benefit under section 10(20A), though it might come with the later part of the provisions of said section. [Para 8]