- (1.) Heard learned counsel for the parties.
(2.) The issue that arises for our consideration in this matter is as to whether respondent, namely, Vidarbh Irrigation Development Corporation, is a local authority within the meaning of Section 10(20A) of the Income Tax Act,1961 (hereinafter referred to as "the Act").
(3.) Section 10(20A) of the Act stipulates certain kinds of income which are not to be included in total income. Though this provision stands omitted vide Section 4(m) with effect from 1st April,2003 by the Finance Act, 2002, the assessment period in question is much prior thereto and is, therefore, relevant. Section 10(20A) reads as under: "Any income of an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both." ;