Introduction: The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, issued Notification No. 97/2023 on November 6, 2023, under clause (46) of section 10 of the Income-tax Act, 1961. This notification pertains to the Punjab Infrastructure Regulatory Authority and its specified income sources.
Detailed Analysis: The notification identifies the ‘Punjab Infrastructure Regulatory Authority’ with PAN: AAAGT0931J, an authority constituted by the Government of Punjab. It specifies the income sources to which this notification applies:
1. Grants Received: The income arising from grants received by or arising to the Authority from the State Government.
2. Sum Received: This includes income received by the Authority from any sources, such as arbitration fees fixed by the Authority under its regulations for proceedings.
3. Interest from Banks: Income in the form of interest from banks.
The notification lays down certain conditions that the Punjab Infrastructure Regulatory Authority must adhere to for the notification to be effective:
- No Commercial Activity: The Authority shall not engage in any commercial activity.
- Consistency of Activities: The nature of the specified income and the activities of the Authority shall remain unchanged throughout the financial years.
- Income Tax Return: The Authority shall file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
The notification is applicable for assessment years 2022-2023 and 2023-2024, relevant to the financial years 2021-2022 and 2022-2023.
Conclusion: The issuance of Notification No. 97/2023 by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, signifies the government’s recognition of the Punjab Infrastructure Regulatory Authority and its specified income sources for income tax purposes. By adhering to the conditions set forth, the Authority can ensure the effectiveness of this notification. This step demonstrates the government’s commitment to regulating and addressing income sources of such entities in the interest of fiscal transparency and governance.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 97/2023-Income Tax | Dated: 6th November, 2023
S.O. 4817(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, ‘Punjab Infrastructure Regulatory Authority’ (PAN: AAAGT0931J), an authority constituted by the Government of Punjab, in respect of the following specified income arising to that body, namely:-
a) Grants received by or arising to the Authority from State Government.
b) Sum received by the Authority from any sources including arbitration fees fixed by the Authority under the regulations for the proceedings before the Authority; and
c) Interest from banks.
2. This notification shall be effective subject to the conditions that Punjab Infrastructure Regulatory 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.
3. This notification shall be deemed to have been applied for assessment years 2022-2023 & 2023-2024 relevant to the financial years 2021-2022 & 2022-2023.
[Notification No. 97/2023 F. No. 196/25/2021-ITA-I]
VIKAS SINGH, Director (ITA-I)
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
