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In a significant win for Noida Toll Bridge Company Limited (NTBCL), the Income Tax Appellate Tribunal (ITAT) has quashed a massive tax demand of approximately ₹21,000 crore. The listed entity, part of the IL&FS Group, operates the Delhi-Noida-Delhi (DND) flyover, a critical infrastructure link between the two cities. The tax demand, spanning nine financial years from 2006 to 2015, included ₹10,893 crore in alleged unpaid taxes and the same amount in penalties.
The Income Tax department had accused NTBCL of concealing income and failure to submit accurate income details. The Income Tax department issued an assessment order on December 31, 2008, followed by reassessment proceedings. These proceedings sought to disallow amortization of interest on zero-coupon bonds issued by NTBCL and taxed designated returns as income.
Additionally, the department classified land provided by NOIDA/DDA on lease as a subsidy and disallowed depreciation on the DND Toll Bridge. NTBCL contested the tax claims, questioning the jurisdiction of the reassessment and enhancement notices while challenging various disallowances and additions on merit. The Tribunal, in its August 8, 2023 ruling, cancelled the reopening and enhancement of NTBCL’s tax assessments, providing relief for six out of nine assessment years (FY 2006 to FY 2012).
This resulted in the removal of around ₹16,000 crore in tax demands. Additionally, the Tribunal overturned the penalty orders in NTBCL's favor on May 17, 2024. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Basics of Generative AI : Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Web Development A Comprehensive ASP.
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The penalties for these years were also dismissed on September 4, 2024. "Considering the fact that the Co-ordinate Bench of the Tribunal in the quantum Appeal, deleted the additions made against the assesses, the order of the penalty proceedings being consequential to the said additions, will not sustain. Accordingly, the impugned orders of the penalty are hereby quashed”, said ITAT in its latest order dismissing the Penalty proceedings as well” the order said.
“With this order the complete demand and penalty of approx. Rs 21000 crore has been fully addressed in favor of the company”, said NTBCL spokesperson. (You can now subscribe to our Economic Times WhatsApp channel ).
