DND flyover operator Noida Toll Bridge Company gets massive ₹21,000 crore tax relief
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.
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