COMMISSIONER OF INCOME-TAX ANDHRA PRADESH, HYDERABAD. vs ANDHRA PRADESH STATE ROAD TRANSPORT CORPORATION, HYDERABAD.

The Supreme Court held that the Andhra Pradesh State Road Transport Corporation is entitled to income tax exemptions under Section 4(3)(i) of the Income-tax Act, 1922, and Section 11 of the Income-tax Act, 1961, as its activities are for the general public utility and not for profit. The Court clarified that while the Corporation must operate efficiently, it is not required to run at a loss, and its income should be exempt from taxation as it serves public interests. The appeals by the Revenue were dismissed, affirming the High Court's decision in favor of the Corporation.