New Okhla Industrial Development ... vs Chief Commissioner Of Income Tax

The Supreme Court upheld the decision of the Allahabad High Court, affirming that the New Okhla Industrial Development Authority (NOIDA) is not a local authority under Section 10(20) of the Income Tax Act, 1961 post the amendment effective from 01.04.2003. The Court clarified that the exemption under Section 10(20A) was no longer applicable, and thus, the Authority is liable to pay income tax. The Court dismissed the appeals challenging the notices issued under Section 142 of the Income Tax Act, 1961.