In Brief
The Supreme Court dismissed an appeal by the Income Tax Department challenging the High Court's decision to remand a matter to the Income Tax Appellate Tribunal. The core issue was whether the Vidarbha Irrigation Development Corporation qualified as a 'local authority' entitled to tax exemption under Section 10(20A) of the Income Tax Act. The High Court had rightly remanded the case because the Tribunal had failed to assess the question in light of the relevant statutory provisions establishing the corporation and defining its functions. The Court found no basis to interfere with a remand order and rejected the Department's premature appeal.
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