BWI: Jaypee Infratech Ltd gets Interim Relief in Regaining 10-Year Tax Holiday for its Yamuna Expressway Project

Source : Jaypee Infratech Ltd Thursday, February 26, 2015 4:00PM IST (10:30AM GMT)   (NSE:JPINFRATEC)(BSE:533207) Jaypee Infratech Ltd gets Interim Relief in Regaining 10-Year Tax Holiday for its Yamuna Expressway Project   New Delhi, Delhi, India Jaypee Infratech Ltd, one of India’s leading real estate developers, was recently granted a relief by the Income Tax Appellate Tribunal in a case related to tax holiday granted by Govt. of Uttar Pradesh to the company for the Yamuna Expressway Project. ITAT decided against an earlier order by Higher Income Tax Authorities which had observed arrears in adjudication of a tax holiday of 10-years awarded to the Company. Jaypee Infratech developed the Yamuna Expressway under the tools system through a concession agreement granted by the Govt. of Uttar Pradesh, under Section 80 I.A. of the Income Tax Act 1961, wherein a tax holiday is available for such infrastructure projects for 10 consecutive Assessment Years. The company claimed itself to be qualified under Section 80 I.A. of the Income Tax Act 1961, and filed the tax returns accordingly. The matter was taken up by the Income Tax Department, and the tax holiday was allowed. Thereafter, this was again scrutinized by the Higher Income Tax Authorities, which observed arrears in adjudication of the Tax Holiday and thereafter disallowed the tax holiday to the company. Jaypee Infratech engaged Mr Pankaj Garg, Founding Principal Consultant, Prakash Legal Advisers, a senior High Court and Supreme Court Tax Counsel to challenge the authorities’ decision. Mr Garg argued that the basis on which the tax holiday was denied by the Income Tax Authorities is not sustainable in the eyes of law. “The matter was contested purely on interpretation of law supported with material facts that the Yamuna Expressway is not only a toll road but also a highway wherein housing and other activities are integral part of this project. These activities started to generate revenue even before the operations of the Yamuna Expressway. This interpretation is extracted from the provisions of the Section 80 I.A. of the Income Tax Act 1961, that herein the company is entitled to a tax holiday for 10 consecutive years” said Mr Pankaj Garg, Founding Principal Consultant, Prakash Legal Advisers The matter was brought before the Hon’ble Income Tax Appellate Tribunal (ITAT) and Mr Pankaj Garg assisted by Mr Milind Garg, Senior Associate and other associates of the firm, succeeded in establishing a Prima Facie at the stage of the interim relief itself.     KEYWORDS: Business/ Finance:Business Services, Construction & Property, Law firms & Legal Services, Major diversified industrial groups, Real Estate;General:Govt. & Public Policy   To ensure that you continue to receive email from Business Wire India in your inbox, please add businesswireindia.com to your Address Book or Safe List.   To submit a press release, click here. To unsubscribe or modify your Business Wire India settings, please visit your profile page on Business Wire India. Connect with us on: Facebook | Twitter | Google+

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