In Brief
The Supreme Court considered whether the New Okhla Industrial Development Authority (NOIDA), established under the Uttar Pradesh Industrial Area Development Act, 1976, was entitled to exemption from tax deduction at source (TDS) under Section 194A(3)(iii)(f) of the Income Tax Act, 1961. The Court held that NOIDA qualifies as a "Corporation established by a State Act" within the notification dated 22.10.1970, as it was brought into existence by notification under Section 3 of the 1976 Act. Following precedent on statutory corporations, the Court dismissed the Revenue's appeals, affirming that banks need not deduct TDS on interest paid to such statutory development authorities.
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