NEW DELHI: The Income Tax Appellate Tribunal (ITAT) has given a Rs 16,000-crore relief to the beleaguered IL&FS arm Noida Toll Bridge Company – the special purpose vehicle that built and runs the Delhi-Noida Direct Flyway – dismissing the enhancement, merits of addition and reopening of the assessment by the tax department.
The demand of Rs 7,983 crore, and an equal amount of penalty, pertained to assessment years 2006-07 to 2011-12. While the original assessment order was issued on December 31, 2008, reassessment proceedings to disallow amortisation of interest on zero coupon bonds were initiated on March 28, 2013, which the tribunal said happened “beyond four years”. It said that for assessment year 2004-05, the issue of amortisation of interest was decided in favour of the company.
