ADITYAPUR INDUSTRIAL AREA DEV. AUTHORITY vs UNION OF INDIA .

The Supreme Court upheld the validity of the notice issued by the Deputy Commissioner of Income Tax regarding the obligation of the Central Bank of India to deduct tax at source from the interest on fixed deposits of the Adityapur Industrial Area Development Authority, following amendments to the Income Tax Act, 1961, specifically the omission of Section 10(20A) and the addition of an Explanation to Section 10(20). The Court affirmed the High Court's decision that the amended provisions were applicable, thereby rejecting the appellant's challenge. The ruling clarifies the tax obligations of public authorities under the amended Income Tax Act.