CBDT Notification No. 101/2016/ F. No. 300196/12/2016-ITA-I dated 27th October, 2016
1. 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, Bihar Electricity Regulatory Commission, a body constituted by the State Government of Bihar, in respect of the following specified income arising to that Commission, namely:-
(a) amount received in the form of government grants;
(b) amount received as licence fee from licensees in electricity;
(c) amount received as application processing fee; and
(d) interest earned on government grants and fee received.
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income remain unchanged throughout the financial years; and
(c) shall file returns of income in accordance with the provision of clause (g) of sub-section (4C) section 139 of the Income-tax Act, 1961.
3. This notification shall be applicable for the financial years 2016-17 to 2020-21.
For ready reference of readers - Section 10(46)
Section 10 of Income Tax Act 1961: In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included—
Clause (46) any specified income arising to a body or authority or Board or Trust or Commission (by whatever name called) which—
(a) has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public;
(b) is not engaged in any commercial activity; and
(c) is notified by the Central Government in the Official Gazette for the purposes of this clause.
Explanation.—For the purposes of this clause, "specified income" means the income, of the nature and to the extent arising to a body or authority or Board or Trust or Commission (by whatever name called) referred to in this clause, which the Central Government may, by notification in the Official Gazette, specify in this behalf.