ORDER The Income Tax Appellate Tribunal, Allahabad has referred the following question of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act) for opinion to this Court:
"Whether on the facts and in the circumstances of the case, the Tribunal was, in law, justified in holding that the assessee is a Local Authority and its income was exempt under section 10(20) of the Income Tax Act, 1961?"
The reference relates to the assessment year 1983-84.
2. Briefly stated the facts giving rise to the present reference are as under:
2. Briefly stated the facts giving rise to the present reference are as under:
The respondent/assessee is Forest Corporation of U.P. duly constituted by the Government of U.P. During the course of assessment proceedings the respondent/ assessee claimed its status as a local authority, which was not accepted by the assessing officer. Feeling aggrieved the respondent/assessee preferred an appeal before the CIT(A), who held that the income is exempt under section 10(20) of the Act and cancelled the assessment order which order has been upheld by the Tribunal.
3. Heard Sri A.K. Mahajan, learned Standing counsel for the revenue and Sri S.P. Gupta has filed his appearance on behalf of the respondent/assessee.
3. Heard Sri A.K. Mahajan, learned Standing counsel for the revenue and Sri S.P. Gupta has filed his appearance on behalf of the respondent/assessee.
4. We find that the Hon'ble Supreme Court in the case of respondent/assessee itself viz., the CIT v. U.P. Forest Corporation (1998) 230 ITR 945 (SC) has held that the Forest Corporation is not a local authority and is, therefore, not entitled to exemption under section 10(20) of the Act.
4. We find that the Hon'ble Supreme Court in the case of respondent/assessee itself viz., the CIT v. U.P. Forest Corporation (1998) 230 ITR 945 (SC) has held that the Forest Corporation is not a local authority and is, therefore, not entitled to exemption under section 10(20) of the Act.
5. In this view of the matter, we answer the question referred to us in the negative i.e., in favour of the revenue and against the assessee. There shall be, however, no order as to costs.
5. In this view of the matter, we answer the question referred to us in the negative i.e., in favour of the revenue and against the assessee. There shall be, however, no order as to costs.