## Report on Notification Regarding Income Tax Exemption for Andhra Pradesh Pollution Control Board
**1. Executive Summary:**
This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), concerning income tax exemption for the Andhra Pradesh Pollution Control Board (APPCB). The notification, S.O. 4001(E), grants the APPCB exemption from income tax under clause 46 of section 10 of the Income-tax Act, 1961, for specified income categories. This exemption is subject to certain conditions, including not engaging in commercial activities and filing income tax returns. The notification also addresses its applicability to previous financial years contingent on the outcome of a Special Leave Petition before the Supreme Court.
**2. Introduction:**
This report aims to provide a comprehensive overview of Notification No. 1032022/S.O. 4001(E), issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), as it pertains to the income tax exemption granted to the Andhra Pradesh Pollution Control Board (APPCB). The analysis is based solely on the text of the notification provided.
**3. Policy Overview:**
This is a *new* policy granting income tax exemption.
* **Core Objective(s):** The core objective, as inferred from the text, is to provide income tax exemption to the Andhra Pradesh Pollution Control Board for specific income categories, as defined under clause 46 of section 10 of the Income-tax Act, 1961. This likely aims to support the financial operations of the APPCB and its ability to fulfill its mandated duties related to pollution control.
**4. Background and Rationale:**
This policy addresses the taxability of income earned by the Andhra Pradesh Pollution Control Board. The exemption likely stems from a recognition of the APPCB's role as a public body responsible for environmental protection and the desire to avoid taxing funds used for these essential functions. The reference to a legal challenge (Special Leave Petition) suggests there may have been prior disputes regarding the APPCB's tax status. The notification is explicitly issued in compliance with an order from the High Court for the State of Telangana.
**5. Key Provisions / Changes:**
As this is a new policy granting an exemption, the key provisions establish:
* **Income Tax Exemption:** The Andhra Pradesh Pollution Control Board is granted exemption from income tax under clause 46 of section 10 of the Income-tax Act, 1961.
* **Specified Income Categories:** The exemption applies to the following categories of income earned by the APPCB:
* Consent fee received under the Water Prevention and Control of Pollution Act, 1974 and Air Prevention and Control of Pollution Act, 1981.
* Analysis fees or air ambient quality survey fees or noise level survey fees.
* Reimbursement of expenses received from Central Pollution Control Board towards National Water Quality Monitoring Programme and National Air Quality Monitoring Programme like Schemes.
* Bio medical authorization fees.
* Cess reimbursement and cess appeal fees.
* Grants from State or Central Government.
* Fees received under the Right to Information Act, 2005.
* Sale of law books where no profit element is involved and the activity is not commercial in nature.
* Interest on loans and advances given to staff of the Board.
* Miscellaneous income like sale of old scrap items, tender fees.
* Interest earned on a to j above.
* **Conditions for Exemption:** The exemption is subject to the following conditions:
* The APPCB shall not engage in any commercial activity.
* The activities and the nature of the specified income shall remain unchanged throughout the financial years.
* The APPCB shall file return of income in accordance with the provision of clause g of subsection 4C of section 139 of the Incometax Act, 1961.
* **Retrospective Application:** The notification is deemed to have been applied for the financial years 2016-2017, 2017-2018, 2018-2019, 2019-2020 and 2020-2021, subject to the outcome of a Special Leave Petition filed by the Central Board of Direct Taxes.
**6. Target Audience and Stakeholders:**
The primary target audience is the Andhra Pradesh Pollution Control Board. Other stakeholders include:
* The Central Board of Direct Taxes (CBDT).
* The Ministry of Finance, Department of Revenue.
* The Central Pollution Control Board.
* The State Government of Andhra Pradesh.
* The Hon'ble Supreme Court of India (due to the pending Special Leave Petition).
* Entities that interact with the APPCB, such as industries subject to pollution control regulations.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT) is the responsible agency for issuing and implementing this notification. The APPCB is responsible for complying with the conditions for exemption, including filing income tax returns and refraining from commercial activities.
* **Timelines/Procedures:** The notification is effective from August 24, 2022. The APPCB must file income tax returns annually as per the specified clause of the Income-tax Act. Retrospective application depends on the Supreme Court's decision.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of this policy is to financially support the Andhra Pradesh Pollution Control Board by exempting its specified income from taxation. This would free up resources for the APPCB to focus on its core mandate of environmental protection and pollution control within Andhra Pradesh. It promotes regulatory clarity and helps APPCB to better utilize resources in their pollution control activities.
**9. Conclusion:**
The notification granting income tax exemption to the Andhra Pradesh Pollution Control Board is a significant development that clarifies the Board's tax obligations and provides financial relief. This exemption, subject to specified conditions and contingent on the outcome of a legal challenge, aims to bolster the APPCB's capacity to fulfill its environmental protection responsibilities. This is likely to be viewed positively by the APPCB and stakeholders reliant on its regulatory functions.
Key Entities Referenced
Income-tax Act, 1961: A law pertaining to income tax in India.
Andhra Pradesh Pollution Control Board: A Board constituted by the State Government of Andhra Pradesh.
Andhra Pradesh: A state in India.
Water Prevention and Control of Pollution Act, 1974: An act related to prevention and control of water pollution.
Air Prevention and Control of Pollution Act, 1981: An act related to prevention and control of air pollution.
Central Pollution Control Board: A central government organization related to pollution control.
National Water Quality Monitoring Programme: A scheme for monitoring water quality.
National Air Quality Monitoring Programme: A scheme for monitoring air quality.
Right to Information Act, 2005: An act related to right to information.
Central Board of Direct Taxes: A central government board related to direct taxes.
Supreme Court of India: The highest judicial court of India.
High Court for the State of Telangana: A High Court for the state of Telangana.
Telangana State Pollution Control Board: A pollution control board for the state of Telangana.
Ministry of Finance: A ministry of the Government of India.
Department of Revenue: A department within the Ministry of Finance.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3827] नई दिल्ली, बुधिार, अगस्ट्त 24, 2022/भाद्र 2, 1944
No. 3827] NEW DELHI, WEDNESDAY, AUGUST 24, 2022/BHADRA 2, 1944
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 24 अगस्ट्त, 2022
का.आ. 4001(अ).—आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड(46) द्वारा प्रित्त िजियों
का प्रयोग करत े हुए, केन्द्द्र सरकार एतिद्वारा आन्द्र प्रिेि प्रिषू ण जनयंत्रण बोड ड (पैनः-AAAJA1610Q), िल (प्रिषू ण
जनिारण एि ं जनयंत्रण) अजधजनयम, 1974 (1974 का 6) के तहत गठित बोड,ड को उस बोडड को उद्भूत होने िाली
जनम्नजलजखत जिजनर्िष्टड आय के संबंध में उि खंड के प्रयोिनार् डअजधसूजचत करती है, अर्ाडत:्-
(क) िल (प्रिषू ण जनिारण एिं जनयत्रं ण) अजधजनयम, 1974 (1974 का 6) और िायु (प्रिषू ण जनिारण एिं जनयंत्रण)
अजधजनयम 1981(1981 का 14) के तहत प्राप्त सहमजत िुल्क;
(ख) सिेक्षणिुल्क या िायु पठरिेि गुणित्ता सिेक्षण िल्ु क या ध्िजन स्ट्तर सिेक्षण िुल्क;
(ग) राष्ट्रीय िल गणु ित्ता जनगरानी कायडक्रम और राष्ट्रीय िायु गुणित्ता जनगरानी कायडक्रम िैसी योिनाओं के जलए
केन्द्द्रीय प्रिषू ण जनयंत्रण बोड डसे प्राप्त व्यय की प्रजतपूर्तड;
(घ) िैि जचदकत्सा प्राजधकरण िुल्क;
(ङ) उपकर प्रजतपूर्त डऔर उपकर अपील िल्ु क;
(च) राज्य और केन्द्द्र सरकार से अनिु ान;
5724 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(छ) सूचना का अजधकार अजधजनयम,2005 (2005 का 22) के अतं गडत प्राप् त िल्ु क;
(ि) जिजध पुस्ट्तकों की जबक्री िहां कोई लाभ तत्ि िाजमल नहीं और गजतजिजध िाजणजज्यक प्रकृजत की नहीं है;
(झ) बोडड के स्ट्टाफ को दिए गए ऋणों और अजिमों पर ब्याि;
(ञ) जिजिध आय िैसे दक रद्दी माल की जबक्री, जनजििा िुल्क;
(ट) उपयुडि (क) स े (ञ) पर अर्िडत ब्याि।
2. यह अजधसूचना इन ितों के अधीन प्रभािी होगी दक आंर प्रिेि प्रिषू ण जनयंत्रण बोड:ड-
(क) दकसी व्यािसाजयक कायडकलाप में जलप् त नहीं होगा;
(ख) जित्तीय िषों के िौरान कायडकलाप तर्ा जिजनर्िष्टड आय की प्रकृजत अपठरिर्तडत रहगें ी; और
(ग) आयकर अजधजनयम,1961 की धारा 139 की उप-धारा (4ग) के खडं (छ) के प्रािधानों के अनुसार आयकर
जििरणी िाजखल करेगा।
3. यह अजधसूचना जित्तीय िषड 2016-2017, 2017-2018, 2018-2019, 2019-2020, और 2020-2021 के
जलए लाग ू की गई मानी िाएगी िो दक जििेष अनुमजत याजचका(सी) सं. 014351/2022 के माध्यम स े भारत के माननीय
सिोच् च न्द्यायालय म ें ठरट याजचका 4834/2020 और 15629/2020 में सामान्द्य आिेि दिनांक 26.07.2021 के समक्ष
तेलगं ाना राज्य के उच् च न्द्यायालय के द्वारा केंद्रीय प्रत्यक्ष कर बोडड द्वारा िायर जििेष अनुमजत याजचका के नतीिों की ितों
के अधीन होगी।
[अजधसूचना स.ं 103/2022/फा. स.ं 300196/18/2017-आईटीए-I (पीटी. -1)]
सौरभ िैन, अिर सजचि
व्याख्यात्मक ज्ञापन
इस अजधसूचना को तेलगं ाना राज्य प्रिषू ण जनयंत्रण बोडड और आंरप्रििे प्रिषू ण जनयंत्रण बोड डबनाम सीबीडीटी एिं अन्द्य के
मामले म ें ठरट याजचका संख्या 4834/2020 और 15629/2020 म ें आए माननीय तले ंगाना राज्य के उच् च न्द्यायालय के
सामान्द्य आिेि के अनुपालन में िारी दकया िा रहा ह।ै माननीय तले ंगाना उच् च न्द्यायालय के दिनांक 26.07.2021 के
उपयुडि आिेि के प्रजत भारत के माननीय उच् चतम न्द्यायालय में एस एल पी(सी)संख्या 014351/2022 के तहत एक
जििेष अनुमजत याजचका िायर की गई ह।ै इस अजधसूचना को भूतलक्षी प्रभाि िेने से दकसी भी व्यजि पर कोई प्रजतकूल
प्रभाि नहीं पड़ रहा ह।ै
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 24th August, 2022
S.O. 4001(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax
Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, the
Andhra Pradesh Pollution Control Board (PAN AAAJA1610Q), a Board constituted by the State
Government of Andhra Pradesh under the Water (Prevention and Control of Pollution) Act, 1974 (6 of
1974), in respect of the following specified income arising to that Board, namely:-
(a) consent fee received under the Water (Prevention and Control of Pollution) Act, 1974 (6 of
1974) and Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981);
(b) analysis fees or air ambient quality survey fees or noise level survey fees;
(c) reimbursement of the expense received from Central Pollution Control Board towards
National Water Quality Monitoring Programme and National Air Quality Monitoring
Programme like Schemes;[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
(d) bio medical authorization fees;
(e) cess reimbursement and cess appeal fees;
(f) grants from State or Central Government;
(g) fees received under the Right to Information Act, 2005 (22 of 2005);
(h) sale of law books where no profit element is involved and the activity is not commercial in
nature;
(i) interest on loans and advances given to staff of the Board;
(j) miscellaneous income like sale of old scrap items, tender fees; and
(k) Interest earned on (a) to (j) above.
2. This notification shall be effective subject to the conditions that the Andhra Pradesh Pollution
Control Board,-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the
financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section
(4C) of section 139 of the Income-tax Act, 1961.
3. This notification shall be deemed to have been applied for the financial years 2016-2017, 2017-
2018, 2018-2019, 2019-2020 and 2020-2021 subject to the outcome of the Special Leave Petition filed by
Central Board of Direct Taxes vide SLP(C) No. 014351/2022 in the Hon’ble Supreme Court of India
against the Common order dated 26.07.2021 in W.P.4834/2020 and 15629/2020 by the High Court for the
State of Telangana.
[Notification No. 103/2022/F. No. 300196/18/2017-ITA-I (PT.-1)]
SOURABH JAIN, Under Secy.
Explanatory Memorandum
This notification is issued in compliance to the Hon’ble High Court for the State of Telangana’s Common
Order dated 26.07.2021 in W.P. No.4834/2020 and 15629/2020 in case of Telangana State Pollution
Control Board and Andhra Pradesh Pollution Control Board vs. CBDT & ors. Special Leave Petition has
been filed by SLP(C) No.014351/2022 in the Hon’ble Supreme Court of India against the above mentioned
Order dated 26.07.2021 of the Hon’ble High Court of Telangana. It is certified that no person is being
affected adversely by giving retrospective effect to this notification.
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