U.I.T., Bhilwara vs Union Of India And Ors. ...
2023 Latest Caselaw 9850 Raj

[2023:RJ-JD:39425-DB]

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 5080/2014

U.I.T., Bhilwara

----Petitioner Versus Union Of India And Ors.

                                                                    ----Respondents


For Petitioner(s)            :     Mr. Abhimanyu Singh Rathore
For Respondent(s)            :     Mr. K.K. Bissa



             HON'BLE MR. JUSTICE VIJAY BISHNOI

HON'BLE MR. JUSTICE PRAVEER BHATNAGAR

Judgment / Order

17/11/2023

1. In the instant petition, the petitioner has challenged the

action of the Assessing Officer of initiating proceedings against the

petitioners-Urban Improvement Trusts/Development Authorities

for assessment of the tax under the provisions of Income Tax Act,

1961 (for short "the Act of 1961").

2. Precisely, the legality of the proceedings is challenged on the

ground that the petitioner being local authority within the meaning

of Section 10 (20) of the Act of 1961, its income is not assessable

to tax and therefore, the proceedings initiated are without

jurisdiction. It is submitted that the term 'District Board/Municipal

Committee' used in clause 3 of Explanation to Section 10(20) of

the Act of 1961 in the context it is used include in its meaning

Urban Improvement Trust/Development Authority as it is legally

entitled and entrusted by the State Government with the control

or management of local fund.

[2023:RJ-JD:39425-DB] (2 of 2) [CW-5080/2014]

3. The question involved in the present writ petition is no more

res-integra, inasmuch as in the matter of "Income Tax Officer &

Ors. vs. Urban Improvement Trust & Ors.", AIR 2018 SC

5085, the Hon'ble Supreme Court while setting aside a Bench

decision of this Court deciding the issue in favour of the assessee-

Urban Improvement Trust, has categorically held that the Urban

Improvement Trust constituted and established under Rajasthan

Urban Improvement Act, 1959 does not fall within the definition of

'local authority' within the meaning of clause 3 of Explanation to

Section 10 (20) of the Act of 1961.

4. The legal position settled by the Hon'ble Supreme Court as

aforesaid is not disputed by the counsel appearing for the

petitioners.

5. In this view of the matter, this writ petition is liable to be

dismissed in light of the decision of the Hon'ble Supreme Court in

Urban Improvement Trust's case (supra).

6. Accordingly, the writ petition is dismissed in light of decision

of the Hon'ble Supreme Court in Urban Improvement Trust's case

(supra). The interim order passed in this matter by this Court shall

stand vacated. No order as to costs.

(PRAVEER BHATNAGAR),J (VIJAY BISHNOI),J

21 - ms rathore

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