CALCUTTA STATE TRANSPORT CORPORATION vs COMMISSIONER OF INCOME-TAX, WEST BENGAL

The Supreme Court addressed the definition of 'local authority' under Section 2(31)(vi) of the Income-tax Act, 1961, affirming the Tribunal's decision that the Calcutta State Transport Corporation does not qualify as a local authority. The Court held that the definition provided in the General Clauses Act does not apply to the assessee, as it is not legally entitled to manage a municipal or local fund. Consequently, the appeal was dismissed, upholding the High Court's ruling against the assessee's claim for tax exemption under Section 10(20).