The Central Board of Direct Taxes (CBDT) notified the Competition Commission of India eligible for exemption under section 10(46) of the Income Tax Act, 1961.
The Board empowered under clause (46) of section 10 of the Income-tax Act, 1961 notified for the purposes of the said clause, ‘Competition Commission of India’ a Commission established under sub-section (1) of Section 7 of the Competition Act, 2002, in respect of the various specified income arising to the said Commission, namely Amount received in the form of Government grants; Fee received under the Competition Act, 2002; and Interest income accrued therefrom.
Under section 10(46), any specified income arising to any notified body/authority/Board/ Trust/Commission (or a class thereof) which has been established or constituted by or under a Central, State or Provincial Act, or has been constituted by the Government or a State Government with the object of regulating or administering any activity for the benefit of the general public and is not engaged in any commercial activity and is notified by the Central Government in the Official Gazette for the purposes of this clause is exempt from tax.
The CBDT has laid down the conditions for the eligibility for exemption under section 10(46) of Competition Commission of India.
Firstly, the Competition Commission of India shall not engage in any commercial activity.
Secondly, the activities and the nature of the specified income shall remain unchanged throughout the financial years.
Thirdly, the Competition Commission of India 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.
Fourthly, the Competition Commission of India shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.
This notification shall apply with respect to the financial years 2021-2022, 2022-2023, 2023-2024, 2024-2025 and 2025-2026.
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