Local authority — HP Marketing Board is not a local authority within the meaning of s 10(20) of the Income-tax Act, 1961 or s 3(31) of the General Clauses Act, 1897, as held by HPHC in CIT v HP Marketing Board — In favour of: The revenue; ITA Nos 1, 17, 18 and 19 of 2007 and 18 and 22 of 2008.
The Marketing Board has control over only 20% of the funds which are paid to it by the Committee. It has no power to raise the funds, it is not an elected body and the Marketing Board does not, by itself, carry out any of the functions which are attributable to municipal authorities. There is no obligation upon the Board to spend its funds for providing specific amenities. Hence, the funds cannot be considered to be local funds.
Decided on: 24 June 2011.
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