Agricultural Produce Market Committee vs Commr.Of Income Tax & Anr

The Supreme Court determined that Agricultural Market Committees (AMCs) do not qualify as 'local authorities' under the Explanation to Section 10(20) of the Income-tax Act, 1961, following the amendment by the Finance Act, 2002. The Court held that the definition of 'local authority' is limited to specific entities such as Panchayats and Municipalities as outlined in the Constitution, and thus AMCs are not entitled to tax exemption under the said section. The appeal was dismissed, affirming the decisions of the lower authorities and the High Court.