Telangana High Court shields biodiversity body from Income Tax

The Telangana High Court has ruled that the Biodiversity Conservation Society of Telangana (BIOSOT) is exempt from central Income Tax. The court quashed an order by the Income Tax department that had frozen the organization's bank accounts.

Justices P Sam Koshy and Narsing Rao Nandikonda determined that BIOSOT's income is protected under Article 289(1) of the Constitution, which shields state government revenue from Union taxation. The bench clarified that this is a constitutional guarantee rather than a legislative tax break. The court found that BIOSOT performs sovereign conservation duties mandated by the state under the Wildlife Protection Act and the Biological Diversity Act, meaning its funds are legally considered state revenue.