NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY 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 that omitted Section 10(20A). The Court clarified that the classification of NOIDA as a local authority does not exempt it from income tax obligations, particularly after the legislative changes. Consequently, the appeals challenging the notices issued under Section 142 of the Income Tax Act were dismissed, reinforcing the tax liability of the Authority.