Allahabad Court November 1986 Judgments

U.P. Forest Corporation Vs. Commissioner of Income-tax

Court: Allahabad

Reported in: (1987)62CTR(All)150; [1987]167ITR827(All); [1987]32TAXMAN157(All)

K.C. Agrawal, J.1. This is an application under Sub-section (2) of Section 256 of the Income-tax Act, 1961, moved by the U.P. Forest Corporation for a direction to the Income-tax Appellate Tribunal to refer the following two questions to this court:' (1) Whether the Corporation has been created under the Act as an agent and carries on its activities (including the activities of disposing of trees, exploitation of forest resources which yield profit and income) on behalf of the State and not on its own account ? (2) Whether the income in regard to which the assessment is sought to be made under the Income-tax Act, against the Corporation, is in truth and reality the income of the State of U.P, and is, therefore, exempt from income-tax under Article 289(1) of the Constitution ?' 2. For the assessment year 1978-79, the assessee-Corporation submitted a return declaring a loss of Rs. 7,57,800 and that its income is exempt under Section 10(20) of the Income-tax Act. The assessee's plea regar...