Greater Noida authority gets Rs 100-bn tax relief from Delhi HC

The court directed the Central Board of Direct Taxes (CBDT) to issue the necessary notification within three months

In massive tax relief for the Greater Noida Industrial Development Authority, the Delhi High Court has held that it was not carrying out any commercial activity with profit motive.

Exempting the Authority from paying income tax, the court said it was eligible for exemption under Section 10 (46) of the Income Tax Act, 1961. The order is expected to be challenged in the Supreme Court.

The income tax department had issued notices to the Authority to pay Rs 100 billion in taxes between 2004 and 2015.

Section 10(46) of the Act stipulates “specified income” of a notified authority is exempt from income tax.