Income-tax---

----Reference---Question of law---Exemption---.Local authority---Agricultural marketing committee---Is a local Authority---Gains derived by it exempt from tax---No question of law arose for reference---Indian Income Tax Act, 1961, Ss.10(20) & 256(2).

The Agricultural Marketing Committee is. a local authority within the meaning of section 10(20) of the Income Tax Act, 1961, and the gains derived by it are, therefore, entitled to exemption under the Act. No question of law arose for reference.

CIT v. Agricultural Market Committee (1983) 143 ITR 1020 (AP) fol.

S.R. Ashok for Appellant.

JUDGMENT

SYED SHAH MOHAMMED QUADRI, J.---This is an application filed under section 256(2) of the Income Tax Act, 1961, for a direction to the Income-tax Appellate Tribunal to state the case and refer the following question of law to this Court for opinion, viz.;

"Whether, on' the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the assessee is a 'local authority' and that the income derived by it is exempt from tax?"

In view of the judgment of this Court in CIT v. Agricultural Market Committee (1983) 143 ITR 1020, taking the view that the Agricultural Marketing Committee is a "local authority" within the meaning of section 10(20) of the Income Tax Act, 1961, and. is therefore, entitled to exemption, we are of the view that the Tribunal is right incoming to the conclusion that no referable question of law arises. The I.T.C. is, therefore, dismissed.

M.B.A./3276/FCCase dismissed.