LAWS(ALL)-1962-4-3

CITY BOARD MUSSOORIE Vs. COMMISSIONER OF INCOME TAX

Decided On April 11, 1962
CITY BOARD, MUSSOORIE Appellant
V/S
COMMISSIONER OF INCOME-TAX. Respondents

JUDGEMENT

(1.) AT the instance of the City Board, Mussoorie (hereinafter referred to as the assessee), the following questions of law have been referred to us by the Income-tax Appellate Tribunal (hereinafter referred to as the Tribunal) for our opinion :

(2.) THE assessee is a municipality functioning under the provisions of the U.P. Municipalities Act (hereinafter called the Municipalities Act). THE following facts emanate from the statement of case submitted by the Tribunal. THE assessee obtained a licence under section 4(1) of the Indian Electricity Act (hereinafter called the Electricity Act) to supply electrical energy within the municipal limits of Mussoorie. Under Notification No. 917-C/895-W dated October 13, 1919, the U.P. Government granted to the assessee a licence under section 4(3)(b) of the Electricity Act sanctioning the extension of supply of electrical energy to the following places :

(3.) WE will now take up the third question. Admittedly, the City Board of Mussoorie was superseded and on 17th April, 1943, an office-in-charge and an administrator were appointed to carry on its affairs. It is contended by Mr. Misra that because of the appointment of an office-in-charge and an administrator and for the reason that the City Board of Mussoorie was superseded it ceased to be a local authority and cannot consequently be assessed to tax. WE have no hesitation in saying that there is no substance whatsoever in this submission. The City Board of Mussoorie was a Municipality when the present Municipalities Act was passed. Section 2, clause (9), of the Municipalities Act reads as follows :