The Principal Commissioner Of Income ... vs New Town Kolkata Development Authority
2025 Latest Caselaw 3040 Cal/2

Calcutta High Court

The Principal Commissioner Of Income ... vs New Town Kolkata Development Authority on 14 November, 2025

Author: Rajarshi Bharadwaj

Bench: Rajarshi Bharadwaj

ORDER                                                                        OD-1

                                   ITAT/163/2023
                                  IA NO:GA/1/2023

                      IN THE HIGH COURT AT CALCUTTA
                     SPECIAL JURISDICTION (INCOME TAX)
                               ORIGINAL SIDE

       THE PRINCIPAL COMMISSIONER OF INCOME TAX-5, KOLKATA
                               VS.
            NEW TOWN KOLKATA DEVELOPMENT AUTHORITY


BEFORE:
THE HON'BLE JUSTICE RAJARSHI BHARADWAJ
                 AND
THE HON'BLE JUSTICE UDAY KUMAR
Date : 14th November, 2025.
                                                                              Appearance:

                                                        Mr. Soumen Bhattacharjee, Adv.
                                                                    Mr. Ankan Das, Adv.
                                                              Ms. Shradhya Ghosh, Adv.
                                                                         ...for Appellant
                                                       Mr. Abhratosh Majumdar, Sr. Adv.
                                                               Mr. Avra Mazumder, Adv.
                                                                 Mr.Saqib Siddiqui, Adv.
                                                                        ...for Respondent

The Court: We have heard Mr. Bhattacharjee, learned Counsel

appearing for the appellant.

This appeal is admitted on the following substantial questions of law:

"I. Whether the Learned Tribunal has committed substantial error in law in quashing the order passed under Section 263 of the Income Tax Act, 1961 holding it as incorrect without considering the findings of both the jurisdictional Principal Commissioner of Income Tax and the Assessing Officer that the assessee New Town Kolkata Development Authority was not covered by the word/expression of Municipality in clause (e) of Article 243P of the Constitution of India and hence not eligible for exemption on the

ground that they were not covered by the definition of local authority as contained in explanation to Section 10(20) of the Income Tax Act, 1961? II. Whether the Learned Tribunal has committed substantial error in law in holding that the assessee New Town Kolkata Development Authority has been discharging the functions of municipality and is thereby eligible to claim deduction under Section 10(2) of the Income Tax Act, 1961 despite the Hon'ble Supreme Court having clearly settled the matter in its judgment in the case of Income Tax Officer vs Urban Improvement Trust vide Civil Appeal Nos. 10577 to 10586 of 2018 dated 12th October 2018 reported in (2018) 98 taxmann.com 237(SC)?"

The appellant is directed to file requisite number of informal paper books

prepared out of court enclosing therein all relevant papers and documents

used before the learned trial court within 10 (ten) weeks from date by serving

copies thereof to the learned Advocate for the respondents.

Settlement of index and all other formalities are dispensed with.

List this matter after 12 (twelve) weeks.

IA No: GA/1/2023 stands disposed of.

(RAJARSHI BHARADWAJ, J.)

(UDAY KUMAR, J.)

sm