Section 10(A)(i) of the Income Tax Act
Parveen Kr. Aggarwal
(Querist) 19 December 2009
This query is : Resolved
Whether DHBVN (Dakshin Haryana Bijli Vitran Nigam), UHBVN (Uttari Haryana Bijli Vitran Nigam), HVPNL (Haryana Vidhyut Prasaran Nigam Limited), HPGCL (Haryana Power Generation Corporation Limited) incorporated under the Companies Act, 1956 in pursuance of Section 13 of the Haryana Electricity Reforms Act, 1997 will be "Corporations established by State Act"?
adv. rajeev ( rajoo )
(Expert) 19 December 2009
SEc 10(A)(i) of IT Act:
The deduction of profits derived by an undertaking from the export of article or things or computer software shall be available for 10 consecutive A.Ys relevant to P.Y. in which the undertaking begins to manufacture or produce such article or things or computer software.
UHBVN and HPGCL are not companies which will export the things or computer softwares.
It is a distribution of electricity.
Raj Kumar Makkad
(Expert) 19 December 2009
Parveen! Definitely all the electricity corporations are established by State of Haryana under the given quarry.
Parveen Kr. Aggarwal
(Querist) 20 December 2009
Mr. Raj Kumar Makkad, the question is not whether the electricity corporations are established by State of Haryana or not. The question is whether the Corporations are "Corporations ESTABLISHED BY A STATE ACT"
Vineet
(Expert) 20 December 2009
Haryana Vidhyut Prasaran Nigam Limited and Haryana Power Generation Corporation Limited were created on 14th August 1998 by restructuring Haryana State Electricity Borad under Haryana State Electricity Reforms Act, 1997 and thus they are certainly Corporation established by state Act.
I have not been able to lay hand on information regarding other two companies, they should also be creation of state Act. Requested to verify genesis of these companies.
Parveen Kr. Aggarwal
(Querist) 20 December 2009
What does the term "established by a State Act" actually means? Whether Corporations incorporated by the statute itself like Life Insurance Corporation of India Act, 1956, only are included therein or any corporation established under the Act by any other means are also included therein? I shall be obliged if any case law on the point is posted.
