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• On 27th March 2006, the Government approved the levy of these IDC on the colonizers at par with the rates being paid by HUDA to the State Government.

ITA No. 644 & 645/Chd/2018-& 528/2017 Infrastructure Development Fund, Chandigarh vs. DCIT, Chandigarh • During the deliberations of creation of IDF, the department submitted the proposal for amendment in the statutory Act i.e. Act No. 8 of 1975 and following proposal in Section 3A was submitted to the Government for its concurrence:- ( PB Page 28-30) Existing Provisions Proposed Provisions (6) The amount of service The amount of service charges and charges so deposited by the Infrastructure Development Charges so colonizer shall constitute a deposited by the colonizers shall fund called the Haryana constitute a fund called the Haryana Urban Development Fund Infrastructure Development Fund (hereinafter referred as the (hereinafter referred to as the Fund) Fund) which shall vest in the which shall vest in the State State Government. Government.

(3) The {infrastructure development charges}shall be deposited by the colonizer with such officer or person as may be appointed by the government in this behalf.

(4) The colonizer shall in turn be entitled to pass on the {infrastructure development charges} paid by him to the plot holder.

(5) The amount of {infrastructure development charges} if not paid within the prescribed period shall be recoverable as arrears of land revenue.

(6) The amount of infrastructure development charges so deposited by the colonizer shall constitute a fund called the Fund, for stimulating socio-economic growth and development of major infrastructure projects for the benefit of the State of Haryana (hereinafter referred to as the Fund)].

6. Financial Commissioner and Principal Secretary to Member Government Haryana, Public works, Building Roads Department

7. Financial Commissioner and Principal Secretary to Member Government of Haryana, Transport Department

8. Commissioner and Secretary to Government Haryana, Member Town and Country Planning Department

9. Director, Town and Country Planning Department Member Secretary Haryana D.S. DHESI Commissioner and Secretary to,Government Haryana ITA No. 644 & 645/Chd/2018-& 528/2017 Infrastructure Development Fund, Chandigarh vs. DCIT, Chandigarh Town and Country Planning Department As is evident from the above, the high powered committee was headed by the Chief Minister and comprised of Secretaries of various departments relevant for infrastructure development including the Finance Secretary. The committee therefore was merely representative of the State,being constituted as a platform where all the concerned department heads of the State for infrastructure development, were brought together so as to speed up the implementation/execution of infrastructure projects, which was the objective for which the Fund was created (sub section 6),i.e stimulation of socio economic growth and development of major infrastructure projects in the state. The Ld.Counsel for the assessee has also filed before us copies of documents being inter government department communication and minutes of the meeting of the High powered committee at P.B 30-115.On going through the same we find that the documents bring out the fact that the assessee Fund merely contributed to infrastructure projects in the state approved by the government and on direction of the government. The documents filed before us relate to funds utilized for projects relating to construction of Bridge over Tangri Nadi Crossing Jagadhri Ambala Road, extension of Delhi metro to gurgaon,Renuka Dam project and development of international civil air terminal at Chandigarh ,to name a few.The decision for undertaking all these projects were taken by the Government which is evident from the minutes of the meeting held under the chairmanship of the Finance commissioner and Principal Secretary to Govt. of Haryana regarding cost(P.B 33) and his note seeking approval of the Chief Minister for release of funds from IDC for the Bridge ITA No. 644 & 645/Chd/2018-& 528/2017 Infrastructure Development Fund, Chandigarh vs. DCIT, Chandigarh project,(P.B 30), the letter addressed to the Senior Town planner ,Chandigarh,by the Chief Cordinator Planner(NCR) requesting release of funds from IDC for Delhi Metro Gurgaon project as approved in the meeting held under the chairmanship of FC Finance Department (P.B 34) and such other documents relating to other projects. Thus the Fund had no role in the development of infrastructure projects except being a depository of IDC charges collected by the state for the said purpose ,to be utilized as determined by the State.

ITA No. 644 & 645/Chd/2018-& 528/2017 Infrastructure Development Fund, Chandigarh vs. DCIT, Chandigarh NOTES Statement of Objects and Reasons-The Section 3A of the Act 8 of 1975 provides for creation of a Fund from the receipts on account of Infrastructure Development Charges (IDC) and Infrastructure Augmentation Charges (IAC). The said Fund vests with the Director General, Town and Country Planning Haryana, and is presently administered by a High Powered Committee constituted for the purpose for investment on major infrastructure projects and for the purpose of stimulating socio-economic growth for the benefit of State of Haryana. Owing to the increasing complexities involved in such infrastructure projects and in order to leverage the Fund available for structuring and implementation of larger infrastructure projects in PublicPrivate- Partnership, the Government has decided for setting up of Haryana Infrastructure Development Board (hereinafter referred as the Board) as a dedicated agency for encouraging private sector investment in infrastructure projects across all sectors through innovative development and financial structuring of infrastructure projects for implementation in PublicPrivate-Partnership mode, viz., Build-Operate-Transfer, Build- Own-Operate-Transfer, Joint Venture Agreement, concessionaire agreement, equity participation by State, subsidy support, incentivisation in form of tax exemptions, Viability Gap funding, Grant of Government guarantee, etc. The Section 3AA is accordingly proposed to be introduced for the constitution of Board. The sub-section 7 of section 3A is also proposed for amendment to enable transfer of amount collected under the Fund by the Director to the Board. The Preamble of the Act is also proposed for appropriate amendment to reflect the said intent and purpose. The Board is likely to evolve as a 'multi-disciplinary Techno-Legal-Financial Institution for Promotion of Infrastructure Development in the State' under the Haryana Development and Regulation of Urban Areas Act, 1975, with professionals drawn from Administration, Engineering, Town Planning, Legal and Finance cadres. Enabling provision for appointment of officers and employees for the Board has accordingly been made in Section 3AB. The Powers and Functions of the Board has been detailed under Section 3AC. Provision enabling the formulation of bye-laws by the Board for efficient administration of the Board has been provided under Section 3AD and the Government has been empowered under Section 3AE to issue directions to the Board for carrying out provisions of the Act. The Section 24 is also proposed for amendment to add enabling provisions for notification of Rules for prescribing various procedures to be adopted for efficient administration of the Board. Hence this BILL66 * The Board thus, we hold, is not a mere nodal agency of the State.