The agent is not liable for tax for income earned on behalf of the principal but only for the charges received from principal fro his service

Last updated: 25 May 2012

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Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The relevant facts giving rise to this appeal are that the assessee is a company registered under the Companies Act, 1956. The shares of the assessee are wholly owned by the Government of Maharashtra. The assessee has been appointed as the New Town Development Authority and Special Planning Authority for development of various areas in the State of Maharashtra under section 40(b) read with section 113(3A) of the Maharashtra Regional and Town Planning Act, 1966 (hereinafter referred to as the ‘MRTP Act’). Pursuant to above, the assessee has been appointed as the New Town Development Authority for the Navi Mumbai Region by way of a Government Resolution dated 18.3.1970 r.w. Notification dated 20.3.1971 and also has been appointed as Special Planning Authority for various areas such as Aurangabad, Nashik, Nanded, etc by separate Government notification.

Citation :
M/s. City & Industrial Development Corporation of aharashtra Ltd., Nirmal, 2nd floor, Nariman point, Mumbai-400 021 PA No.AACCC 3303 K (Appellant) Vs. ACIT 10(3) Aayakar Bhavan, M.K. Road, Mumbai.(Respondent)

Daily Limit Reached