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Judgment
This matter is taken up through hybrid arrangement.
The present appeal has been filed under Section 260-A of the Income Tax Act, 1961 against the order of the learned Income Tax Appellate Tribunal, Cuttack Bench, Cuttack in ITA No.78/CTK/2021 for Assessment Year 2020-21 for grant of registration under Section 12A of the Income Tax Act, 1961.
Heard learned counsel for the parties.
Admit.
After hearing of the parties, this Court is of the view that the following substantial questions of law require consideration:
I) Whether the order of the learned ITAT is correct in law by holding that the assessee is a “State” when the assessee company has a separate legal existence different from that of “State” ?
ii) Whether the settled law as passed by the Supreme Court in the case of “Adityapur Industrial Area Development vs. Union of India”1, wherein it is held that the income of the authority/entity is not the income of the Government, even though the authority/entity is constituted under an Act enacted by the State Legislature and income derived by the ‘State’ from business (distinguished from Governmental purposes) shall not have exemption from Union taxation unless the Parliament declares such business as incidental to ordinary functions of the ‘State’ ?
At the request of learned counsel for the parties, list this matter on 2nd November, 2023 for final hearing.
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