Greater Noida Devt Authority exempted from tax

noida logoBy Accommodation Times Bureau

NEW DELHI

On Monday, the Delhi High Court (HC) exempted the Greater Noida Industrial Development Authority (GNIDA) from paying Income Tax, stating that it was not carrying out any commercial activity with any profit object.

A bench of Justices Pratibha M Singh and Sanjiv Khanna granted the appeal of the GNIDA looking to set aside a 2015 order of the Central Board of Direct Taxes (CBDT) dismissing its application for grant of exemption under Section 10 (46) of the Income Tax Act 1961.

The Section 10(46) of the Information Technology Act deals with the exemption of ‘specified income’ of certain bodies or authorities.

The Act says that any specified income appearing to a body or authority, constituted by or under a central or state Act with the object of regulating an activity for the betterment of general public and which is not involved in any commercial activity, shall be exempted.

The CBDT had on June 8, 2015, randomly rejected the appeal of authority on the ground that it was making huge profits out of its activities, which are commercial in nature and declare the income of GNIDA  under ‘specified income’, Authority contended before the high court.

It was established for the development of certain areas in the state of Uttar Pradesh as an industrial and urban township, GNIDA said.





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