Case Law Details
New Okhla Industrial Development Authority Vs Union Of India & Ors.(Delhi High Court)
1. The New Okhla Industrial Development Authority1, an entity constituted under the Uttar Pradesh Industrial Area Development Act, 19762 impugns the order dated 24 December 2020 in terms of which the Central Board of Direct Taxes3 has refused to accede to its prayer for being accorded appropriate certification as contemplated in terms of Section 10(46) of the Income Tax Act, 19614. The aforenoted statutory provision enables the CBDT to certify the specified income of a body or authority constituted under a Central, State or Provincial enactment or one which is created by the Union or the State Governments with the object of regulating and administering any activity for the benefit of the general public and which is not engaged in any commercial activity to be exempt from taxation with the income so specified not being liable to be included in its total income of the previous year.
2. The impugned order has come to be passed based on an application made in November 2011 by NOIDA for being accorded the requisite certification under Section 10(46) of the Act. The record would reflect that since the said application had remained pending for a considerable period of time, the petitioner was constrained to approach this Court by way of W.P.(C) 5574/2020 which came to be disposed of on 24 August 2020 with the Court directing the CBDT to decide the petitioner‘s application within 12 weeks.
3. As would be evident from a reading of the order impugned before us, the CBDT has principally drawn an adverse inference in light of NOIDA having extended loans to various entities. This becomes evident from a reading of the facts as encapsulated in Para 7.1 of the impugned order which is extracted hereinbelow:-
“7.1 Vide reply dated 10.12.2020, the Authority also furnished the Balance Sheet for FY 2017-18 to 2018-19. Perusal of the same indicates that loans as under have been advanced:
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