Central Board of Direct Taxes Ors. Vs Telangana State Pollution Control Board (Supreme Court of India)
The Supreme Court considered Special Leave Petitions filed by the Revenue challenging the judgment of the Telangana High Court concerning the entitlement of State Pollution Control Boards to be notified under Section 10(46) of the Income Tax Act, 1961. After hearing the learned Additional Solicitor General and perusing the material on record, the Supreme Court found no reason to interfere with the impugned High Court judgment and dismissed the Special Leave Petitions. Consequently, the High Court’s decision attained finality.
Read HC Judgment in this case: Telangana HC Allows Statutory Authorities to Switch One Income Tax Exemption for Another
Before the High Court, two writ petitions had been filed by State Pollution Control Boards constituted under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. These Boards were statutory authorities established by State Governments to regulate and control pollution and hazardous waste. Each Board had earlier been granted approval under Section 10(23C)(iv) of the Income Tax Act, making them eligible to claim exemption, subject to scrutiny by the assessing authority. However, despite such approvals, exemption on income was denied by the assessing authorities and the disputes were pending in appeal.
