Agastyar Trust vs Commissioner & Secretary To Government ...

The Supreme Court held that the appellant-Trust is not entitled to exemption from urban land tax under the Tamil Nadu Urban Land Tax Act, 1966 for the period 1965 to 1976, as the recognition under Section 12A(a) of the Income Tax Act was granted only in 1977, postdating the exemption claim. The Court emphasized that the exemption norms stipulated by the State Government require that the income must be used solely for the objectives of the Trust, which was not satisfied in this case. Consequently, the appeal was dismissed, upholding the High Court's decision.