Jaypee Infratech, one of India's leading real estate developers, was recently granted a relief by the Income Tax Appellate Tribunal in a case related to tax holiday granted by Govt. of Uttar Pradesh to the company for the Yamuna Expressway Project. ITAT decided against an earlier order by Higher Income Tax Authorities which had observed arrears in adjudication of a tax holiday of 10-years awarded to the Company.

Jaypee Infratech developed the Yamuna Expressway under the tools system through a concession agreement granted by the Govt. of Uttar Pradesh, under Section 80 I.A. of the Income Tax Act 1961, wherein a tax holiday is available for such infrastructure projects for 10 consecutive Assessment Years.

The company claimed itself to be qualified under Section 80 I.A. of the Income Tax Act 1961, and filed the tax returns accordingly. The matter was taken up by the Income Tax Department, and the tax holiday was allowed. Thereafter, this was again scrutinized by the Higher Income Tax Authorities, which observed arrears in adjudication of the Tax Holiday and thereafter disallowed the tax holiday to the company.