AGRICULTURAL PRODUCE MARKET COMMITTEE vs COMMR.OF INCOME TAX

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' was restricted to specific entities such as Panchayats and Municipalities, thereby denying the exemption claimed by the AMC for the assessment year 2003-04. The ruling upheld the decisions of the lower authorities and the Delhi High Court, affirming that AMCs are not entitled to the tax exemption previously available under the unamended provisions.