INFRASTRUCTURE DEVELOPMENT AUTHORITY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD the parties.

(2.) IT is the case of the petitioner that this Authority (petitioner) was constituted on 21 April, 2006 under the Bihar State Infrastructure Development Enabling Act, 2006 for the purpose of acting as the nodal Agency of the State for developing the basic infrastructure in the State of Bihar. It is accepted to be a facilitator in public Private partnership projects.

(3.) ON behalf of the petitioner it has been submitted that the Assistant Commissioner of Income Tax, TDS Circle, Patna, while passing the order dated 02nd February, 2009 failed to keep in mind the certificate issued for the earlier year in identical facts and circumstances and also the fact that the money deposited through FDR has been shown to belong to State of Bihar and interest earned thereupon has also been shown through notes as money of the State of Bihar. It was submitted that in view of facts undisputed and noted even in the impugned order, contained in Annexure -4, the interest money to be received by the petitioner on account of FDR in Banks belongs to the State of Bihar and is exempted from tax on income under Art.289 of the Constitution of India.