In Brief
The Supreme Court held that the New Okhla Industrial Development Authority (NOIDA), constituted under the Uttar Pradesh Industrial Area Development Act, 1976, is a statutory corporation established by that Act. The Court ruled that NOIDA is entitled to exemption from deduction of tax at source (TDS) under Section 194A(3)(iii)(f) of the Income Tax Act, 1961, based on the Central Government Notification dated 22.10.1970. The Court found that the distinction between 'established by' an Act and 'established under' an Act is immaterial when the Act itself provides for the authority's constitution by notification and prescribes its statutory composition. All appeals by the Revenue were dismissed, affirming the High Court's judgment upholding NOIDA's exemption from TDS obligations.
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