GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION vs THE COMMISSIONER OF INCOME TAX

The Supreme Court examined the applicability of Section 10(20A) of the Income-tax Act, which exempts income of authorities constituted for planning, development, or improvement of cities, towns, and villages. The Court held that the Gujarat Industrial Development Corporation, established under the Gujarat Industrial Development Act, 1962, is eligible for tax exemption under this section as it is constituted for development purposes. The appeal was allowed, overturning the High Court's decision that denied the exemption.