Loans by NOIDA not Commercial Activity: Delhi HC allows Income Tax Exemption u/s 10(46)

The Delhi High Court ruled that loans provided by the New Okhla Industrial Development Authority (NOIDA) are not considered commercial activities, allowing NOIDA to claim income tax exemption under Section 10(46) of the Income Tax Act. The court highlighted that NOIDA's primary function is the development of industrial and residential areas, and the loans it provides are in line with this purpose, thus qualifying it for tax exemption. This decision emphasizes that NOIDA's operations, including providing loans, align with its developmental objectives and do not constitute commercial activity.