COMMISSIONER OF INCOME TAX Vs. GUJARAT MARITIME BOARD

JUDGEMENT

(1.) Leave granted.

(2.) Before 13.11.2002, the Board was registered as "Local Authority" as defined under Section 3(31) or the General Clause Act, 1897 which was a very wide definition. Prior to 2002, the Board was availing exemption as local Authority under Section 10(20) of the 1961 Act. Accordingly, prior to 2002 the income of the Board was not eligible to income-tax under Section 10(20) or the Income-tax Act, 1961.

(3.) By finance Act, 2002, an Explanation was added in Section 10(20) by which 'Local Authority' was defined. It gave a restricted meaning to the word 'Local Authority". By reason of the said Explanation, the expression. "Local Authority' was confined to panchayats, municipality, municipal committee, district board and cantonment board. Thus, Maritime Board did not come within the definition of the expression "Local Authority".