NEW DELHI: The Delhi high court docket on Monday exempted the Greater Noida Industrial Development Authority (GNIDA) from paying source of revenue tax, saying it was now not wearing out any business task with any benefit reason.
A bench of Justices Sanjiv Khanna and Pratibha M Singh allowed the plea of the GNIDA in quest of to put aside a 2015 order of the Central Board of Direct Taxes (CBDT) rejecting its application for grant of exemption below Section 10 (46) of the Income Tax Act 1961.
Section 10(46) of the IT Act offers with the exemption of 'specified source of revenue' of certain bodies or government. It says that any specified source of revenue coming up to a frame or authority, constituted through or below a central or state Act with the thing of regulating or administering an task for the good thing about common public and which isn't engaged in any business task, will probably be exempted.
The authority had contended prior to the high court docket that the CBDT had on June 8, 2015, arbitrarily rejected its plea to claim the source of revenue of GNIDA below 'specified source of revenue' at the ground that it was making huge earnings out of its actions, which might be business in nature.
The GNIDA had said that it was established for the improvement of certain areas in the state of Uttar Pradesh as an business and urban township, and thus discharged sovereign functions as an arm of the government.
A bench of Justices Sanjiv Khanna and Pratibha M Singh allowed the plea of the GNIDA in quest of to put aside a 2015 order of the Central Board of Direct Taxes (CBDT) rejecting its application for grant of exemption below Section 10 (46) of the Income Tax Act 1961.
Section 10(46) of the IT Act offers with the exemption of 'specified source of revenue' of certain bodies or government. It says that any specified source of revenue coming up to a frame or authority, constituted through or below a central or state Act with the thing of regulating or administering an task for the good thing about common public and which isn't engaged in any business task, will probably be exempted.
The authority had contended prior to the high court docket that the CBDT had on June 8, 2015, arbitrarily rejected its plea to claim the source of revenue of GNIDA below 'specified source of revenue' at the ground that it was making huge earnings out of its actions, which might be business in nature.
The GNIDA had said that it was established for the improvement of certain areas in the state of Uttar Pradesh as an business and urban township, and thus discharged sovereign functions as an arm of the government.
Delhi HC says GNIDA not carrying out commercial activity for profit
![Delhi HC says GNIDA not carrying out commercial activity for profit]()
Reviewed by Kailash
on
February 27, 2018
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