M/S NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY vs COMMISSIONER INCOME TAX APPEALS(41)

The Supreme Court upheld the Delhi High Court's ruling that Greater Noida Industrial Development Authority qualifies as a local authority under Section 10(20) of the Income Tax Act, 1961, thus exempting it from income tax. The Court clarified that the respondent company, Rajesh Projects (India) Pvt. Ltd., was not liable for tax deduction at source under Section 194-I for lease payments made to Greater Noida. The appeals by the Income Tax authorities were dismissed, affirming the High Court's decision.