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2018 (7) TMI 664 - SC - Income TaxTDS u/s 194A - NOIDA - interest paid to the Authority on its deposits - Authority is Corporation or not - conditions to be satisfied as established by a Central, State or Provincial Act as per hte Notification dated 22.10.1970 - Held that:- A Constitution Bench of this Court in Sukhdev Singh and Others vs. Bhagatram Sardar Singh Raghuvanshi and Another, (1975 (2) TMI 111 - SUPREME COURT)had occasion to consider the nature and character of Corporation including its early history. Justice Mathew, delivering his concurrent opinion noted that Corporations in 17th, 18th and 19th Centuries were far more like the bodies corporate we call “public authorities” today. Section 194A(3)(iii) clauses (b), (c) and (d) refer to expression “established”. In sub clause (b) expression used is “established by or under a Central, State or Provincial Act”, in sub clause (c) the expression used is “established under the Life Insurance Corporation Act” and in sub clause (d) expression used is “established under the Unit Trust of India Act”. The Section thus uses both the expressions “by or under”. The expression established by or under an Act have come for consideration before this Court on several occasions. As we revert back to the provisions of 1976, Act. The very preamble of that Act reads “an Act to provide for the Constitution of an Authority for the development of certain areas in the State into industrial and urban township and for masses connected through with”. Thus, the Act itself provides for constitution of an authority. Section 2(b) of the 1976 Act defines Authority as authority constituted under Section 3 of the Act. This Court having already laid down in Dalco Engineering (2010 (3) TMI 912 - SUPREME COURT OF INDIA) that establishment of various financial corporations under State Financial Corporation Act, 1951 is establishment of a Corporation by an Act or under an Act. We are of the view that the above ratio fully covers the present case and we have no doubt that the Authority have been established by the 1976 Act and it is clearly covered by the Notification dated 22.10.1970. It is further relevant to note that composition of the Authority is statutorily provided by Section 3 of 1976 Act itself, hence, there is no denying that Authority has been constituted by Act itself. Thus High Court [2016 (5) TMI 570 - ALLAHABAD HIGH COURT] did not commit any error in dismissing the appeal filed by the Revenue.
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