Summary:
The tribunal also directed the Income Tax department to refund the ?395 crore it had collected with 12% interest to the MIDC. The Income Tax Appellate Tribunal (ITAT) recently directed that income tax cannot be levied on the rent from land acquired by the Maharashtra Industrial Development Corporation (MIDC) and given on lease. The Income Tax department had started tax collection on the leased rent amount on land acquired by the MIDC from 2006 to 2016. While opposing the Income Tax department’s move to levy tax, the MIDC argued that though it controls the land, its ownership remains with the State government. The matter was referred to the Income Tax Commissioner, who rejected the appeal..