Telangana State Pollution Control Board Vs Central Board of Direct Taxes (Telangana High Court)
The Telangana High Court disposed of two writ petitions filed by the Telangana State Pollution Control Board and the Andhra Pradesh Pollution Control Board, both challenging the failure of the tax authorities to notify them under Section 10(46) of the Income Tax Act, 1961. As the issues involved were common, the petitions were decided through a single judgment.
Read SC Judgment in this case: SC Upholds Right to Switch Income Tax Exemption Regime for Statutory Bodies
Both Boards are statutory bodies constituted by their respective State Governments under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. Their functions relate to the regulation and control of pollution and hazardous waste in accordance with statutory mandates. Each Board had earlier been granted approval under Section 10(23C)(iv) of the Income Tax Act, enabling them to seek exemption on income, subject to assessment scrutiny. However, despite such approval, the exemption was denied by the assessing authorities for various reasons, and the disputes were pending in appeal.
Following the insertion of Section 10(46) into the Income Tax Act by the Finance Act, 2011, the petitioners applied in March 2017 to be notified under that provision, contending that it was more appropriate to their statutory character and activities. They asserted that they satisfied all conditions under Section 10(46), that similarly placed Pollution Control Boards in other States had already been notified under that provision, and that notification would grant certainty of exemption. Despite these applications, no action was taken for nearly three years.
