Dismissing the appeal the Court held that the assessee was a statutory body, established and incorporated under section 5 of the Karnataka Industrial Area Development Act, 1966. The assessee had been constituted to make provision for orderly establishment and development of industries in suitable areas in the State of Karnataka. It was virtually controlled by the State Government. It had been constituted to carry out the activities towards public purpose, namely, orderly establishment and development of industries in suitable areas in the State. It was a charitable institution entitled to exemption. (AY.2009-10)