In that view of the matter, the reliance placed by counsel for the Department regarding s. 10(20) and Explanation will not make any difference. Taking into consideration income of authority is under Constitution of India vide order enacted either for the purpose of dealing with or setting up the housing scheme for the purpose of planning and development of the improvement of the cities, towns and villages or both for which the authorities are created to carry out the functions of State which are sovereign whereas the urban development and calculation of development charges will fall under the development charges. 18. In that view of the matter, deletion of cl. (20A) will not make difference in case of assessee. In our considered opinion, cl. (3) will come to the help of the assessee. In that view of the matter, we are considered opinion that the authority-assessee is a local authority for the purpose of carrying out of the improvement and development function of the State. 19. In that view of the matter, the issue is required to be answered in favour of the assessee and against the Department. In view of the answer, other issues become academic, therefore, we are not deciding those issues.