Law:

Section:

Krishi Utpadan Mandi Samiti constituted under U.P. Krishi Utpadan Mandi Adhiniyam, 1964 is not a local authority within meaning of section 10(20) Section 10(20) of the Income-tax Act, 1961 - Local authority - Assessment year 2003-2004 - Whether Krishi Utpadan Mandi Samiti is not one of entities mentioned in Explanation to section 10(20 ), and, therefore, it is not a local authority within meaning of section 10(20 ) - Held, yes Interpretation of statutes - Rule of literal interpretation FACTS The petitioner-samiti had been constituted under the U.P. Krishi Utpadan Mandi Adhiniyam, 1964. The order was passed requiring petitioner to furnish income-tax returns for the assessment year 2003-04 and also to show cause as to why penalty be not imposed for non-furnishing of the returns in time. The petitioner challenged the said order on the ground that it was a local authority and, hence, exempt from income-tax under section 10(20). HELD Explanation to section 10(20) shows that only four entities are local authorities for the purpose of section 10(20), namely, (i ) Panchayat, (ii) Municipality, (iii) Municipal Committee and District Board, (iv) Cantonment Board. Krishi Utpadan Mandi Samiti is not one of the entities mentioned in the Explanation to section 10(20). [Para 6] The Explanation to section 10(20) uses the word 'means' and not the word 'includes'. Hence, it is not possible for the Court to extend the definition of 'local authority' as contained in the Explanation to section 10(20). It is also not possible to refer to the definitions in other Acts, as the Act now specifically defines 'local authority'. [Para 7] It is well-settled that in tax matters, the rule of literal interpretation applies and it is not open to the Court to extend the language of a provision in the Act by relying on equity, inference, etc. [Para 8] It is the first principle of interpretation that a statute should be read in its ordinary, natural and grammatical sense. [Para 9] This principle is applied with particular emphasis while interpreting the taxing statutes, and the fundamental principle of interpreting taxing statutes is the principle of strict construction. In this respect, taxing…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492