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2016 (2) TMI 457

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..... Nirupma Kotra, CIT, DR ORDER PER BENCH All these appeals filed by the assessee and are directed against the order of the Commissioner of Income Tax (Appeals)-1, Noida, for the assessment years 2007-08 to assessment year 2012 13 on the following grounds -: Grounds for the assessment year 2006-07 -: 1. That the impugned order of the learned Addl. CIT(TDS) is patently against law, erroneous and merits to be quashed. 2. That, on the facts and circumstances of the case and in law, the learned Addl. CIT(TDS) has grossly erred in holding that the appellant was liable to deduct tax at source under the Income Tax Act, 1961 (Act) from interest payment to New Okhla Industrial Development Authority (Noida Authority), a .....

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..... AT Delhi I Bench. 4. The Ld. Departmental Representative submitted that the Hon ble Allahabad High Court, vide this judgment dated 28.02.2011 held that NOIDA is not a local authority and cannot claim the benefit of exemption u/s 10(20) of the Act and hence the issue should be decided against the assessee. 5. We find that this judgment was considered by the various benches of the tribunal in their orders referred above. The tribunal in the case of Canara Bank (Supra) for the assessment year 2006-07 held as followed -: 8. It is observed that the assessee is a creation of the UP Industrial Area Development Act, 1976, a copy of which has been placed on page 102 of the assessee s paper book. Preamble of this Act reads as : An Act t .....

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..... aced in the paper book. The ld. AR also drew strength to fortify his point of view by relying on the same judgment for contending that the assessee is a Corporation established by the State Act. Since both the sides have heavily relied on the same judgment, it becomes significant to note its facts and ratio. 9. In that case, the appellant, a private limited company, employed respondent for more than two decades. The Respondent s service was terminated by the appellant due to some physical disability. The Respondent complained to the Disability Commissioner against such termination. The Disability Commissioner `suggested the employer to re-employ the Respondent, which suggestion was turned down by the appellant. The Respondent argue .....

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..... stinction, it was held that a company is incorporated and registered under the Companies Act and not established under the Companies Act. 10. It is significant to note that the line of distinction drawn by the Hon ble Supreme Court between the Corporations established `under the Act and Corporations established `by the Act is to be seen in the background of the facts prevailing in that case in which the Respondent urged that the appellant, a company, be declared as established by or under the Act. The Hon ble Supreme Court further observed that: `Thus, a State Financial Corporation is established under a central Act. Therefore, when the words by and under an Act are preceded by the words established , it is clear that the refer .....

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..... several area-wise Industrial Area Development Acts. Since NOIDA has been notified under the UP Industrial Area Development Act, we are of the considered opinion that the expression any corporation established by a State Act shall include NOIDA (New Okhla Industrial Development Authority) in the given circumstances. 12. We find that identical issue involving payment of interest by some banks to Ghaziabad Development Authority without tax withholding came up for consideration before the Delhi Bench of the Tribunal in the case of Chief/Senior Manager, Oriental Bank of Commerce vs. ITO. Vide its order dated 15.7.2011 in ITA No.2228/Del/2011, the Tribunal has held that the payment of interest by Oriental Bank of Commerce to Ghaziabad Dev .....

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