Section 113 of the Income Tax Act
The decision most relied on for Section 113 is CIT v. Karnataka Urban Infrastructure Development and Finance Corporation (284 ITR 582), cited in 73 of the 28 judgments on BharatTax that turn on this section.
Leading authorities on Section 113
Funds received by an entity acting as a nodal agency or agent of the government for implementing specific government schemes, or income generated from such funds (like lease premiums or interest), are not taxable in the hands of the agency if held on behalf of or remitted to the government.
The law declared by a High Court is binding on all subordinate authorities and tribunals within its territorial jurisdiction.
Beneficial statutes, especially procedural provisions, can be given retrospective effect if they are enacted for the benefit of the community as a whole, applying the doctrine of fairness, even without an explicit retrospective provision.
Institutions established for specific purposes are not considered 'local authorities' for the purpose of Section 10(20) of the Income Tax Act.
Revenue authorities are not justified in assessing business income in the hands of an entity engaged in construction and development of residential and commercial structures entirely on behalf of the State, as such income constitutes income of the State and is not exigible to income tax. This principle was affirmed by the jurisdictional High Court, affirming the Tribunal's decision.
Judgments on Section 113
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