Income Tax

Concession/Exemption/Incentive/Rebate

— Exemption — Authority constituted under an Act of the State — Condition precedent for exemption of its income under Art. 289 from Union taxation — Held, such income is entitled to exemption under Art. 289 only if the same is the income of the State — An authority constituted under Bihar Industrial Area Development Authority Act, 1974, held, is a body corporate having a legal personality different from the State — Its income is its own and not that of the State — Therefore, such authority although not carrying on trade or business as postulated in Art. 289(2), subsequent to amendment to Ss. 10(20-A) and 10(20), Income Tax Act, w.e.f. 1-4-2003, its income, held, not entitled to exemption under S. 289 — Hence, notice of CIT requiring the bank concerned to deduct tax at source from interest accrued on fixed deposit receipts of the said Authority, held, valid, (2006) 5 SCC 100