In Brief
This case involved multiple companies that leased plots from NOIDA and Greater NOIDA for real estate development. They disputed whether they were required to deduct tax at source (TDS) on lease rent payments. The authorities claimed they were 'local authorities' exempt from income tax, hence TDS was not required. The Supreme Court affirmed the High Court's decision, holding that NOIDA/Greater NOIDA are not local authorities under the amended Section 10(20) since the Finance Act, 2002 excluded them. Annual lease rent is subject to TDS under Section 194-I, though lump-sum premiums and interest remain exempt. The 1995 circular relied upon by the authorities was invalidated by the 2002 amendments. All appeals were dismissed.
The lawyer headnote and full judgment text are available to registered users.