From the Judgment and Order dated 3rd December, 1971 of the Andhra Pradesh High Court in R.C. No.
T. Desai and Miss A. Subhashini for the Appellant.
After the Respondent Corporation was formed, the Income tax Department took the view that the income of the Respondent Corporation was liable to income tax and assessed the Respondent Corporation to income tax for the assessment years 1958 59 and 1959 60.
216 to 218 NT of 1973.
The Respondent Corporation thereupon filed a writ petition in the Andhra Pradesh High Court companytending that the property owned by it and the income earned by it were the property and income of a State exempted from Union taxation under Article 289 1 of the Constitution.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
The Respondent, the Andhra Pradesh State Road Transport Corporation, is a Road Transport Corporation established with effect from January 11, 1958, by the State of Andhra Pradesh by a numberification issued under section 3 of the Road Transport Corporations Act, 1950 Act No.
P. Rana, G.S. Chatterjee, S.K. Dholakia, C.S.S. Rao and Raju Ramachandran for the Interveners.
64 of 1950 hereinafter referred to in short as the RTC Act .
During the whole of this period the income made from road transport was exempt from income tax.
This companytention was rejected and the writ petitions were dismissed by the High Court.
Prior to the establishment of the Respondent Corporation road transport in the State of Andhra Pradesh was a department of the Government, being run by the Government of Hyderabad prior to the formation of the State of Andhra and thereafter by the Government of Andhra Pradesh.
S. Nariman, B. Parthasarthy and T.A. Ramachandran for the Respondent.
The Judgment of the Court was delivered by MADON, J. The above three Appeals have been filed by certificate granted by the Andhra Pradesh High Court under section 261 of the Income tax Act, 1961, against the judgment of that High Court in an income tax reference.
The judgment of this Court is reported as Andhra Pradesh State Road Transport Corporation v. Income tax Officer, B 1 B Ward, Hyderabad and Anr.,
1964 52 I.T.R. 524, 535 36 s.c.
14 of 1970.
