| COURT: | Supreme Court |
| CORAM: | A.K. Sikri J., Ashok Bhushan J |
| SECTION(S): | 10(20) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | functional test, interpretation of statutes, local authority, municipality |
| COUNSEL: | Sanjay Jhanwar |
| DATE: | October 12, 2018 (Date of pronouncement) |
| DATE: | October 15, 2018 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 10(20) Interpretation of statutes: Law on whether "functional test" as laid down in UOI vs. R.C. Jain, (1981) 2 SCC 308 is still good law explained in the context of whether the statutory functions conducted by a municipal committee enables it to qualify as a 'local authority' | |
The High Court based its decision on the fact that functions carried out by the assessee are statutory functions and it is carrying on the functions for the benefit of the State Government for urban development. The said reasoning cannot lead to the conclusion that it is a Municipal Committee within the meaning of Section 10(20) Explanation Clause (iii). The High Court has not adverted to the relevant facts and circumstances and without considering the relevant aspects has arrived at erroneous conclusions. Judgments of the High Court are unsustainable
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