CBDT notifies Income Tax Exemption to Kanpur Development Authority

The CBDT has notified an "income tax exemption to the Kanpur Development Authority." The exemption, which is a significant victory for the state body, was made on the grounds that its income is derived from activities that are for the public good. The ruling clarifies that a government body cannot be taxed on its income if it is not a commercial enterprise. The decision is a crucial reminder to all that such a body cannot be treated as a commercial enterprise.