- (1.) LEAVE granted.
(2.) IN this batch of civil appeals a short question which arises for determination is : whether Agricultural Market committee ("amc", for short) is a "local authority" under the expla nation to Section 10 (20) of the Income-tax Act, 1961 ("1961 Act", for short ). For the sake of convenience we refer to the facts mentioned in Civil Appeal No. . . . . . . . . . . . . . . . of 2008 (arising out of s. L. P. (C) No. 6757 of 2007) filed by AMC, Narela, Delhi. Appellant-COMMITTEE is established under the Delhi agricultural Produce Marketing (Regulation) Act, 1998 ("1998 act", for short ). The provisions of the said 1998 Act enjoin upon the appellant to provide the facilities for marketing of agricultural produce in Narela, Delhi. This is apart from performing other functions and duties such as superintendence, direction and control of markets for regulating the marketing of agricultural produce.
(3.) FOR the assessment year 2003-04, the appellant-Committee claimed exemption from payment of tax under income earned by it on the ground that it was a "local authority" within the meaning of Section 10 (20) of the said 1961 Act. It relied upon the definition of "local authority" in section 2 (l) of the said 1998 Act. The A. O. rejected the appellant's claim for exemption relying upon Circular no. 8/2002 dated 27. 8. 02 issued by CBDT. The view taken was that the amended provisions of Section 10 (20) of the 1961 act were not attracted to "agricultural Produce Marketing societies" or "agricultural Market Boards" even when they may be local authorities under Central or State Legislations. Aggrieved by the said order, appellant filed an appeal before CIT (A) who upheld the view taken by the A. O. and declined the exemption claimed by the appellant.;