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Is Noida a corporation under UP law? SC to examine

Earlier, the apex court had refused to grant any stay on the high court direction to the I-T department

Press Trust of India  |  New Delhi 

Is Noida a corporation under UP law? SC to examine

The Supreme has said it will examine a plea of the department on whether -- New Okhla Industrial Development Authority -- is a corporation established by the under the state industrial development

A bench of Justices R K Aggarwal and A M Sapre has listed the matter for final disposal on October 24.


The bench has said that it will look into the appeal filed by the I-T department against an order of the High which held that is a corporation established under the UP Industrial Area Development Act and, therefore, banks are not liable to deduct at source on fixed

Earlier, the apex had refused to grant any stay on the high direction to the I-T department.

Appearing for and Dena Bank, counsels Pankaj Garg and Milind Garg said that the appeal of the I-T department was not maintainable as was a corporation established by the state and that banks were not under the statutory obligation to deduct and pay the

The dispute on the issue first arose in 2013, when the I-T department imposed a liability on the banks for non - deduction of TDS on the interest on receipts (FDRs) of

Against the decision to levy tax, the banks preferred an appeal before the Commissioner of (Appeals), saying was a corporation.

The appeal was decided in favour of the banks and, thereafter, the department preferred a petition before the Appellate Tribunal (ITAT), which again decided in the favour of the banks.

The department then moved the High against the order of the ITAT, but once again the appeal was decided against it.

The I-T department appeal before the apex has said that the issue for consideration is whether is a corporation entitled for exemption from deduction of at source under the provisions of a notification issued in 1970 under the Act.

It has said that the high erred in holding that is covered under exemption from TDS under the Act and the banks are not liable to deduct at source on interest paid to the on its FDRs.

First Published: Mon, October 16 2017. 02:04 IST
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