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Section 3A (7) The Fund shall be collected and managed by the Director and passed on for the purpose of its further utilisation to the Board to be constituted by the Government for this purpose.

3AA. Establishment and constitution of Board.--(1) The State Government shall, by notification in the Official Gazette, establish a Board consisting of the following members, namely:-

      (1)      The Chief Minister of Haryana. Chairman
      (ii)     The Chief Secretary to Government of Haryana Vice-Chairman
      (iii)    The Principal Secretary to Government of Haryana, Member Finance
               Department
      (iv)     The Principal Secretary to Government of Haryana, Member Irrigation
               Department
      (v)      The Principal Secretary to Government of Haryana, Member Power
               Department
                                                                            ITA No. 220-Chd-2020 -
                                                        Infrastructure Development Fund, Chandigarh


      (vi)      The Principal Secretary to Government of Haryana, Member PWD (B&R)
                Department
      (vii)     The Principal Secretary to Government of Haryana, Member Town & Country
                Planning Department
      (viii)    The Principal Secretary to Government of Haryana, Member Transport
                Department
      (ix)      The Director General, Town & Country Planning Member Department,
                Haryana.
      (x)       The Chief Administrator, Haryana Infrastructure Member Secretary
                Development Board
      (xi)      Any other person(s) to be nominated by the Government Special Invitee

      (2)       The Board shall have perpetual succession and a common seal with power to

(a) identify infrastructure projects for private participation;

ITA No. 220-Chd-2020 -

Infrastructure Development Fund, Chandigarh

(b) promote competitiveness and progressively involve private participation while ensuring fair deal to the end-users;

(c) identify and promote technology initiatives in urban development and infrastructure development sector for improving efficiency in the system;

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 ITA No. 220-Chd-2020 -

Infrastructure Development Fund, Chandigarh 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.

16. The case laws relied on by the Ld. Counsel for the assessee supporting its contention that it was a mere nodal agency of the State are all distinguishable on facts where funds were found to have been created for specific projects to be executed on behalf of the government with the assessee having no control over of its utilization. In the case of Delhi State Industrial Development(supra) the Funds were found transferred to the assessee by the Delhi administration for a specific project of development of Narela Industrial Complex . The Honble court found that the assessee was only required to execute the project for the Delhi administration. Accordingly it was held that the fund belonged to the Delhi administration and not the assessee who was only a nodal agency of the Delhi administration for the project. Similarly in the case of Karnataka Urban Infrastructure Development & Finance Corporation (supra) the assessee was found to be have been created for a specific scheme for development of a megacity and a fund created for the purpose. In this backdrop of facts the Hon'ble Court held the assessee to be a mere nodal agency for executing a specific project and the Fund therefore not taxable in its hands.In the case of Saharanpur Development authority ,(supra) the Fund was found to have been received by the assessee from the Government of Uttar Pradesh to be utilized as per the directions of a High Powered Committee. The ITA No. 220-Chd-2020 -