- (1.) Leave granted in S.L.P.(C) No. 7476 of 2006.
(2.) The U.P. Forest Corporation (for short, 'the Corporation'), the appellant No. 1 in Civil Appeal Nos. 9432; 9433; 9435; and 9436 of 2003, was constituted by a notification issued under Section 3 of the U.P. Forest Corporation Act, 1974. In the year 1977, the Income-tax authorities issued a notice to the Corporation to file its return of income for the assessment year 1976-77 under the Income-tax Act, 1961 (for short, 'the Act'). The Corporation challenged the said notice by filing Writ Petition No. 1568 of 1977 which was disposed of by the High Court by holding that the Corporation was a local authority under Section 10(20) of the Act and was entitled to claim exemption. Since the said order was not challenged by the Revenue, the same became final and remained in force till a contrary view was taken by this Court in respect of Assessment Years 1977-78, 1980-81 and 1984-85 in the case of Commissioner of Income-tax, Lucknow v. U.P. Forest Corporation, 1998 230 ITR 945.
(3.) For the Assessment Year 1977-78, the Corporation's income was assessed by making some additions of income and deleting some deductions claimed in the return of income. On an appeal being filed, the Commissioner (Appeals) upheld that the Corporation was exempt from paying tax on the ground that it was a 'local authority' within the meaning of Section 10(20) of the Act. Insofar as the relief sought regarding additions of income and deletion of deductions is concerned, the Commissioner declined to decide the said issue. The Income Tax Appellate Tribunal ('the Tribunal' for short) set aside the said order of the Commissioner (Appeals) and held that the Corporation was not a 'local authority' and remanded the appeals to the Commissioner (Appeals) for rehearing on merits on the issue of grant of relief relating to additions/deductions.;