CBDT has notified ‘Yamuna Expressway Industrial Development Authority’ (YEIDA) for the purposes of allowing exemption under section 10(46) of the Income-tax Act, 1961 (“Act”) on the income received by it in the nature of grants received from the government, money received from the disposal of land or by way of rent vide Notification No. 91/2020 dated 24.12.2020.
Clause (46) to Section 10 was inserted in the Income Tax Act, 1961 vide Finance Act, 2011 w.e.f 01.06.2011 to provide for an exemption from income-tax to any specified income of a body. authority, board, trust or commission which is set up or constituted by a Central, State or Provincial Act or constituted by the Central Government or a State Government with the object of regulating or administering an activity for the benefit of the general public provided-
(i) it is not engaged in any commercial activity, and
(ii) is notified by the Central Government in this behalf.
The nature and extent of income to be exempted is specified by the Central Government while notifying such entity.
Further, under section 139(4C), such a notified entity is required to furnish their return of income with the income tax authority.
Yamuna Expressway Industrial Development Authority is the nodal agency responsible for implementing the Yamuna Expressway Project and allied development in the region. The YEIDA was established in April 2001 under the UP Industrial Area Development Act, 1976. Formerly it was known as Taj Expressway Industrial Development Authority (TEA). Yamuna Expressway stretching 165 kms. connects international tourist destinations of Delhi and Agra. Yamuna Expressway, a 6-lane (extendable to 8 lane) access controlled Expressway, is planned to have 5 LFDs (Land of concessionaire) with facilities of 4 Toll Plazas, and 6 Interchanges along the entire length.
YEIDA notified area covers approx. 2,689 sq. kms. falling in six districts to be developed in two phases.
It’s a Government of U.P. Undertaking. Its main activities are as follows-
1. Execution of Yamuna Expressway
2. Preparation of Master plan for planned development along the Expressway
3. Development of drainage
4. Acquisition of land for construction of Expressway
5. Planned development along the Expressway & feeder roads
6. Electrification & Development of other facilities in the area
The government has notified the following incomes of YEIDA to be exempt from income tax u/s 10(46) of the Act-
(a) Grants received from the State Government;
(b) Moneys received from the disposal of land, building and other properties, movable and immovable;
(c) Moneys received by the way of rent & fees or any other charges from the disposal of land, building and other properties, movable and immovable;
(d) The amount of interest earned on the funds deposited in the banks; and
(e) The amount of interest/penalties received on the deferred payment received from the Allottees of various movable or immovable properties.
The notification clarified that the exemption shall be effective subject to the conditions that YEIDA shall not engage in any commercial activity and activities and the nature of the specified income shall remain unchanged throughout the financial years.
It is also required to file the return of income in accordance with the provision of section 139(4C)(g) and shall file the Tax Audit Report along with the Return of income.
The exemption shall apply retrospectively from AY 2014-15. This income tax exemption under section 10(46) is provided to Yamuna Expressway Industrial Development Authority subsequent to the Order of the Hon’ble High Court of Delhi in the matter of Yamuna Expressway Industrial Development Authority vs. Union of India and Others in W.P. (Civil) No. 5603 of 2020 dated 23.08.2020. In this Order, the Hon’ble Court allowed 12 weeks time to allow the exemption under section 10(46) to YEIDA which was further extended by 4 weeks vide Order dated 23.11.2020.
Read the full text of the Notification No. 91/2020 dated 24.12.2020 notifying Yamuna Expressway Industrial Development Authority under section 10(46) of the Income Tax Act, 1961
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 24th December, 2020
S.O. 4684(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Yamuna Expressway Industrial Development Authority’, (PAN AAALT0341D), an authority constituted by the State Government of Uttar Pradesh, in respect of the following specified income arising to that Authority, namely:-
(a) Grants received from the State Government;
(b) Moneys received from the disposal of land, building and other properties, movable and immovable;
(c) Moneys received by the way of rent & fees or any other charges from the disposal of land, building and other properties, movable and immovable;
(d) The amount of interest earned on the funds deposited in the banks; and
(e) The amount of interest/penalties received on the deferred payment received from the Allottees of various movable or immovable properties.
2. This notification shall be effective subject to the conditions that Yamuna Expressway Industrial Development Authority,-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
(d) shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.
3. This notification shall be deemed to have been applied for the assessment years 2014-2015, 2015-2016, 2016-2017, 2017-2018 and 2018-2019.
[Notification No. 91/2020 /F.No. 300196/4/2014-ITA-I]
GULZAR AHMAD WANI, Under Secy.
Explanatory Memorandum
This notification is issued in view of the Order of the Hon’ble High Court of Delhi in matter of Yamuna Expressway Industrial Development Authority V. Union of India and Others [W.P. (Civil) No. 5603 of 2020], dated 23rd Day of August, 2020. It is certified that by giving retrospective effect to the notification no person interest will adversely get affected.
Download Copy of Notification No. 91/2020 dated 24.12.2020 notifying Yamuna Expressway Industrial Development Authority under section 10(46) in pdf format
Read the full text of the Delhi High Court Order in W.P. (C) No. 5603/2020 dated 25.08.2020 and 23.11.2020
In the High Court of Delhi at New Delhi
Yamuna Expressway Industrial Development Authority
vs.
Union Of India & Ors
W.P.(C) 5603/2020
Date of Decision: 25th August, 2020
J U D G M E N T
C.M. APPL. No.20274/2020
1. Exemption allowed, subject to all just exceptions.
2. Accordingly, the application stands disposed of.
W.P.(C) No.5603/2020
1. The petition has been listed before this Bench by the Registry in view of the urgency expressed therein. The same has been heard by way of video conferencing.
2. Present writ petition has been filed seeking a direction to respondent No. 2 to notify the listed income of the petitioner as ‘specified income’ under Section 10(46) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’).
3. Learned counsel for the petitioner states that the petitioner has made an application as far back as 07th February, 2014 for Notification of its income under Section 10(46) of the Act, however no decision in this regard has been taken by the respondent No. 2. He points out that in the case of a similarly placed authority i.e. Greater Noida Industrial Development Authority vs. Union of India and Others, this Court vide order dated 26th February, 2018 in WP (C) 732/2017 has held that the activities of Greater Noida Authority are not commercial activity within the meaning of Clause (b) to Section 10(46) of the Act. He states that an appeal filed by the Revenue against the said order has been dismissed by the Supreme Court.
4. He also points out that vide Notification dated 23rd June, 2020 the respondent has notified Greater Noida Industrial Development Authority under Section 10(46) of Act.
5. Since the petitioner’s representations dated 07th February, 2014, 19th June, 2018 and 6th January, 2020 have not been decided till date, we dispose of the present writ petition and pending application by directing the respondent No. 2 to decide the petitioner’s applications seeking exemption under Section 10(46) of Act within twelve weeks in accordance with law.
6. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
In the High Court of Delhi at New Delhi
Yamuna Expressway Industrial Development Authority
vs.
Union Of India & Ors
W.P.(C) 5603/2020
Date of Order: 23.11.2020
ORDER
CM Appl. 29971/2020
The application has been listed before this Bench by the Registry in view of the urgency expressed therein.
The same has been heard by way of video conferencing.
Present application has been filed by respondent seeking extension of time to decide the application of the petitioner by four weeks; in addition to the twelve weeks granted by this Court vide order dated 25th August 2020.
Learned counsel for the applicant/respondent submits that there has been a delay in calling for details and clarifications from the petitioner due to the prevailing pandemic.
Keeping in mind the limited prayer sought in the application, the same is allowed.
The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
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