West Bengal Building & Other Vs Central Board of Direct Taxes & Ors. (Calcutta High Court)
The Calcutta High Court disposed of the writ petition after recording that the core controversy stood conclusively resolved by a subsequent notification issued by the Central Government. During the proceedings, the Revenue placed on record a notification dated 14 January 2026 issued by the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes), in exercise of powers under section 10(46) of the Income-tax Act, 1961.
The notification expressly granted exemption under section 10(46) to the West Bengal Building and Other Construction Workers Welfare Board in respect of specified categories of income, namely: cess collected under the Building and Other Construction Workers Welfare Cess Act, 1996; registration fees and yearly subscriptions collected from registered construction workers; amounts received as grants-in-aid and loans from the Government; and interest income earned from investments. The exemption was made conditional upon the Board not engaging in any commercial activity, maintaining unchanged activities and income nature throughout the relevant years, and filing returns of income in accordance with section 139(4C)(g) of the Act. The notification also provided that failure to comply with these conditions could result in penal action and withdrawal of the exemption.
