COMMISSIONER OF INCOME TAX (TDS), KANPUR vs CANARA BANK

The Supreme Court upheld the Allahabad High Court's decision affirming the Income Tax Appellate Tribunal's ruling that Canara Bank was not required to deduct tax at source under Section 194A of the Income Tax Act, 1961 for interest payments made to the New Okhla Industrial Development Authority (NOIDA). The Court clarified that NOIDA, constituted under the Uttar Pradesh Industrial Area Development Act, 1976, is entitled to exemption from such deductions as per Section 194A(3)(iii)(f). Consequently, the appeals by the Revenue were dismissed, affirming the lower courts' findings.