CBDT Notifies 'Yamuna Expressway Industrial Development Authority’ For Exemption Under Sec. 10(46)

Section 10(46) of the Income Tax Act exempts the income of a body or development authority, such as a board, trust, or commission (not a company), that provides public utility services. The provision was inserted via Finance Act, 2023.

The authority, constituted by the State Government of Uttar Pradesh, will be eligible for the following specified income exemptions:

(a) Grants received from the State Government;

(b) Moneys received from the disposal of land, building, and other properties, movable and immovable;

(c) Moneys received by way of rent, fees, or any other charges from the disposal of land, building, and other properties, movable and immovable;

(d) The amount of interest earned on the funds deposited in banks; and

(e) The amount of interest/penalties received on the deferred payment received from the allottees of various movable or immovable properties.

However, the exemption is subject to certain conditions. The Yamuna Expressway Industrial Development Authority shall not engage in any commercial activity, and its activities and the nature of the specified income shall remain unchanged throughout the financial years. Additionally, the authority is required to 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.

“This notification shall be deemed to have been applied for the financial year 2018-2019 to financial year 2022-2023,” the notification said.

Importantly, the notification has been granted retrospective effect for the financial years 2018-2019 to 2022-2023, in accordance with the Order of the Delhi High Court in the matter of Yamuna Expressway Industrial Development Authority v. Union of India and Others in [W.P. (Civil) No. 5318 of 2023], dated 26.04.2023.

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