Commissioner Of Income Tax(Tds) Kanpur And Anr v. Canara Bank

866 SUPREME COURT REPORTS [2018] 7 S.C.R. COMMISSIONER OF INCOME TAX(TDS) KANPUR AND ANR. CANARA BANK B(Civil Appeal No. 6020 of 2018) JULY 02, 2018 [A. K. SIKRI AND ASHOK BHUSHAN, JJ.] Income Tax Act, 1961 – s.194A(3)(iii)(f) – Notification issuedCunder – Payment of interest to State Industrial DevelopmentAuthority – Exemption from deduction of tax at source – Benefit of,when available – New Okhla Industrial Development Authority(NOIDA) constituted under the 1976 Act – Respondent-Bank paidinterest to NOIDA in form of FDs/Deposits, however, did not deducttax at source – Assessing Officer holding that the respondent wasDassessee in default, issued demand notice – Bank filed appeal beforeCommissioner of Income Tax (Appeals) placing reliance uponnotification dtd. 22.10.1970 issued u/s.194A(3)(iii)(f) – Plea ofappellant-Revenue that NOIDA is not entitled for the benefit ofnotification dtd. 22.10.1970 as under the said notification only aECorporation established by Central, State or Provincial Act is entitledfor the benefit, however, NOIDA is not established by the 1976 Actrather it is established under the 1976 Act – Held: Section194A(3)(iii) uses both the expressions “by or under” – In DalcoEngineering case, Supreme Court held that the phrase establishedby or under the Act is a standard term used in several enactments toFdenote a statutory corporation established or brought into existenceby or under the statute – Ratio laid down in Dalco Engineering casefully covers the present case – Further, the composition of NOIDAis statutorily provided by s.3 of 1976 Act itself, hence, it has beenconstituted by the Act itself and is covered by notification dtd.G22.10.1970 – High Court did not commit any error in dismissingthe appeal filed by the appellant – Uttar Pradesh Industrial AreaDevelopment Act, 1976– s.3– State Financial Corporation Act,1951– Interpretation of Statutes. Words & Phrases – ‘Corporation’, ‘Statutory Corporations’and ‘Non-Statutory Corporations’ – Meaning of. Words & Phrases – Expression ‘by or under’ – Meaning of. Dismissing the appeals, the Court HELD: 1.1 A Corporation is an artificial being which is alegal person. It is a body/corporate established by an Act ofParliament or a Royal Charter. It possesses properties and rightswhich are conferred by the Charter constituting it expressly orincidentally. Corporations which are instrumentalities of theGovernment are subject to the limitation as contained in theConstitution. Whereas the statutory corporations owe theirexistence from “by or under” statute, the non-statutory bodiesand corporations are not created by or under statute rather aregoverned by a statute. [Paras 12, 17][875-F-G; 879-H; 880-B] “ESTABLISHED BY A CENTRAL, STATE ORPROVINCIAL ACT” 1.2 Section 194A(3)(iii) clauses (b), (c) and (d) of the IncomeTax Act, 1961 refer to expression “established”. In sub-clause(b) expression used is “established by or under a Central, Stateor Provincial Act”, in sub-clause (c) the expression used is“established under the Life Insurance Corporation Act” and insub-clause (d) expression used is “established under the UnitTrust of India Act”. The Section thus uses both the expressions“by or under”. [Para 19][879-E-F] 1.3 In Dalco Engineering case Supreme Court held thatthe phrase established by or under the Act is a standard termused in several enactments to denote a statutory corporationestablished or brought into existence by or under the statute.Referring to provisions of The State Financial Corporations Act,1951 which provides for establishment of various financialcorporations under the Act, it was held that such FinancialCorporations are established by an Act or under an Act. Oncomparing the provisions of Section 3 of Uttar Pradesh IndustrialArea Development Act, 1976 with those of The State FinancialCorporations Act, 1951, it is clear that the establishment ofCorporation in both the enactments is by a notification by State [2019]1 3a. f&. 4.1 SEA sigad (cea) GMsilk UH BAI DAR Ah 2 Welly, 2018 arg v. &. Rat sik -arerae seit yar sree sfeaa,1961(1961aI 43) — aI 194%faatéd Sax ves siete aa fara afefaa, 1976 at ae3] — ufeyftal oe art 8 ft art — Gla We we at Held —GadUHsR MT 194H(3)(iii)(a)SB aeia arta 22Waa, 1970 al siftant am Hala, wea silk vidaafin ert wifta Port at we a waa fear ort — aft= skagen sitetPren flora wife(ast), a 1976 @ Weafafaa art ufea fear wa é sik var afte & sieteaM H OR TAAet MW 194m @ sella Gla WX GY D Warsal Be Gl shalBl Tal ze sie galery, WH we gfargan sikfaftrara@ | Sa AMH dea sa WHR 8 fe =z sikwen siete farpramittee (es) (ere sat sah wear “mew wer war 2)ol Sax ves silefio aa fawre afafray, 1976 (fa swtSah Ua“1976 a slay” Hel Ta e) Gt aI 3 m aclaR17 atte, 1976 GS at wt ag aiffgra alsa fea4 wifeapt facia a¥ 2005-06 @ fers arafa ser wral/orrURWw at & wy A dhe als cu are wae or tara far|aft,Gar dH 4 sra-He afafias, 1961Ht aR 194mSu Gd ww He Gt Hell sel Ht| wifewl Sel oTweal we ded are Gde F oH aid ey ardteneif greoadm Ol Tay onl Hl ag| alent grr da al wa w a ot odd7 oe & fay oreo gam & fay at gad aNolTg| AVS ae sa dat vam dot ol at wf ag Yaial gat ed ey sed =a A Re after wiga Ht ag| seaaes get sited Re ara+ oRa fee ae Hfava siakaPeat & aro fraprelaet vel pl oT wet| Ser wareall siddriedlake 28 weal, 2011 of ae aftaiRaHed ByRe afar aRoa oe dt ag fe wider sap aff,1961 Ht at 10(20) & saterta ve wire uffaes silkSant sa HI GX OW Be Ael S| ava, uk sflort 4ara-@xsififiay,1961at at194m G waufed a201(1)/201(1m)@ sti aha 28 weal, 2013 HT aires RaOM Hl Heidel H| sa-pe wife4 we sftfatRa fearfe veaeti da aftimy oe aren fraiRdl &| afinot MrTOl Ty sie ara-ay afefray,1961 Hl aR 156HG sya AMafeaort ot aE| mkt relat at sort S sey Hl Tg|oar dH 4 Pater stortpH aka 28 weal, 2013H seerG ala sex sa-He aiyad H sew GY aid eye sa-Hesrgad (site) & waa site wise at| do 4 aged G Waaara-oe aftifiaa, 1961 at met 194m(3) (iii)(a) m seis ate22 HaaR 1970 HI Ut ot ag afleeaa ot stacia fora|after wife4 ake 2 ferae 2013© aud fla grtFrazer sftert @ sree Gl sud Hed gy siict FOR FT|werd faart 4 arta offer & fora S aya eye arr Heada afer @ waa sia wisa wt| afterA at veafifatRa feat feo dat grt woy sitenfra fara wiftrpecr arfer me ar ® da w ae 194H(3)(iii)(a) & Mae GSTIR Bld we aly Heldt wen safesés| wore fayrt 4aferb aresUY ala eee Vea wWarey H Waa slatwisaSl| Sed waawt Ystts A soy Peta arr atawaRa wy a| word Aart aR Ver aaa @ fra S alsaBox Vrars Wares F adhwisa Ht as| Seas ware|aR! sitet GIR Hed By afifatRa — sa =a GH Waaar ols faasel @ fhwifeve fra sel é|areas GH Waa ye wl acter wel al Te 8 fe mittee ve ore fs sel e|area S Waa TIaca a ms ¢ de we @ f mitefed oq, woe a aidaofan get wid 4 et & GR akg 22 saqaxy 1970 aIsRh sicta vel sat 8 sufery wrad HI Behasel =|GR 194m H Vudel sik Hala UHR ER AM 194%(iii)3) (a)® oR ml 7g safewe fae fear ora &|areata TAHfPidat @ va va fea or suaww S veers wy Wad &foRt sra-oe ofefay,1961 & Salad Badal aday Hedwaa ary fey oe ot stad&| sra-pe srfefray, 1961Hl at194m(3)(iii) & Gs (), @ BR () F “ent”aftatet mr sete & vids (@) 4 waa aftatea “foeeg, wa a vida sfifaa err a @ adiwifteaés|eras (1)4 wyad afterfed “oftas dh faa afar Gait wifta & sik oreds (a) 4 waged afteated “ardyhic@ ade at & aftreaferal ar wart fear war é| Vax Wesstanfreea frora afafas,1976 at wenaA dl ae GelTa & fe “asa F ofa sal or sitetfre sik we ae saaUaig arb flor & fav vp wipeHI Wd HeHI Sideoe ob fee afifan”| sa yer afara dt wp wifehTet Hl Vode fea wat &| wa =rareta ay 1976@& afafaaaHt at 3 H adel wl gaat wea fara fa afeftas, 1951m vidGH Wa wea&¢ ad we we a oreé@ feafarhahtta4 Fa ot RMAGT VIdT WI BHR ENofpot pep feat Tas| wed Act 4, IRI 3 G seiwed St WaT Hrd By UI seat aR wlkewt Hr WSfeat traé| steel softfraRa aret armel A Sa =eA Teela we aftenfira fea é fe weg fata Frm afeifras, 1951&aedat as fats fata Porat ot waroar fost sifafaaa eria fot afin & seis fora ot wea &|aed HT Uead & fe vega arent Wl cee U oRlad faah sietaart & sie =rarea Gl GE ee sel & fh willow wt avy1976 @ ofaer wnfta fear wa @ sie ae WI are aante22 staqaxy 1970 at afi& sina sna &| ae sora Hewt Bata & fo as 1976 H afefray Ht ae 3 ERa ort de ue wifeof deaor sade far wa z,sufey sa ad U saosel foar ot wad & fe miteaTot ead sifofaa grt fear war &| (At 15, 28, 29, 30 die 31)sacifad frota [2010](2010) 4 Wa. Ut. a. 378:steal suilfrakaorgee ferties a4UAWUTHY Wel sie sq;23, 27, 31 [1987][1987] 2 34. fA. 0. 855 =(1987)1 Wa. Ut. a. 424:anda Rod da ga flaxeta actbigda Us garcde wut foessik aa;15 [1982][1982] 2 34. fF. 0. 515 =(1981)3 va. U. a. 431- Feta 3ik ar;14, 21 [1976][1976] 4 34. fA. 4. 520 =(1976) 2 Wa. Ut. at. 58:amatrot atta, dva fet area, weetaieI TATA TeAt ARTA silk 3rT;20 [1975][1975] 3 O41. FL3 =(1975)1 Ve. a. at. 421:qued fie sik srr aWR UaMe wait sie wy aq;16, 19 Ua. Ua. 4 fle 518, 636: 4 Wal Sst. 629:SICASA lett TAH FSIS|14arftch (fata) afterter;2018 at Pifder anilet Gi. 6020.(gah we2018atfaldaamtetUW.6064,6056,6058,6055,6060,6054,6066, varaa =arareta fora afar [2019] 1 va. fA. 9. 2016 Ht sa-Heaiict U. 64 A scllelaleVeq Wales Hana4 tte, 2016 & fury silk snes @ faeg Wfas, 1950H speg 136H sells sitter| Ser eA ae vetori al sae AWass. wapedeTaeAN,aweYWHe,(aid) aha ofear oreritafie, wT sieht, (Gah) vesilaafar Rte(Get) wat AA,HeeWo,wyaaafram,(gt)droie,weit«=6ovSs| aged(Gal) ST a ACRweitd var, (Yai) Yafa se,qou wT, fAfee wh UW.ua. Ford, Wa. &. SH, Felseile, ofded va. Ve,(gen)ait Re(gat)yor Re, TRsige (cistva) HAW ¢. Had da lat devil,dt. S. wal, wowPAR (yet) faa a1, (GP)efaetUA,Gael aquisik(gan)Aker AYR sarareara at Prete arate sreires sur A fear| =I. YT — Food at AE| 2. St atel A scree veg =e@ arta 4 ata,2016& oa fta wl ueata fear war & foamaR saesia after & ater at aftgiee Ged ey word fayrt aNHise Hl WS saa-wy ariel wl aot fear war &| sa atteF aeal sie fafa & aes yea siadfera & aie 2017 wT fasrygored afaet (Rifaa)8. 3168 8 saya 2018 ot fafaet sriterG. 6020-s1a-ae aiged (aisive), GA sR WH aU TAaa dm G aeal sie aftaaat ar fafeee wen vara erm,fort 2016 wl ame-ay anal G. 64 A seq zaraw PlaHl wed feat wa es| Sud Vad3. = seen “mle” stati Her florea wa ze) wife Hl Gas (igs) yew silelhin (Re se aafrprasfeifray,1976(fa SAH SAH Val “1976afiet Tat 8)ST at 3 @ seis ante 17 sta, 1976yeaet a.3 wife ar dH zs| wae dw 4 user ar fatea¥ 2005-06 @ fay aafa or wrat/ort uerat we anet } Syi de eis oe oe wove a daa fea| aanft,Saw da 4sra-wy afer,1961 a ant 194m @ aieis Gla Ww ae gIpeltwel HT | AGovernment. In the present case, notification has been issued inexercise of power of Section 3 of 1976 Act and the Authority(NOIDA) has been constituted. The ratio laid down in DalcoEngineering that establishment of various financial corporationsunder State Financial Corporation Act, 1951 is establishment ofa Corporation by an Act or under an Act, fully covers the presentBcase and there is no doubt that the Authority (NOIDA) have beenestablished by the 1976 Act and it is clearly covered by theNotification dated 22.10.1970. The very preamble of the 1976Act reads “an Act to provide for the Constitution of an Authorityfor the development of certain areas in the State into industrialCand urban township and for masses connected through with”.Further, the composition of the Authority (NOIDA) is statutorilyprovided by Section 3 of 1976 Act itself, hence, there is no denyingthat Authority (NOIDA) has been constituted by the Act itself.The High Court did not commit any error in dismissing the appealfiled by the Revenue. [Paras 23, 25, 28 and 30][881-D-E;D883-G-H; 885-E; 887-D-E]Sukhdev Singh and Others v. Bhagatram Sardar SinghRaghuvanshi and Another (1975) 1 SCC 421 : [1975]3 SCR 619 – followed. S.S. Dhanoa vs. Municipal Corporation, Delhi andEOthers (1981) 3 SCC 431 : [1981] 3 SCR 864;Executive Committee of Vaish Degree College, Shamliand Others v. Lakshmi Narain and Others (1976) 2 SCC58 : [1976] 2 SCR 1006; Dalco Engineering PrivateLimited v. Satish Prabhakar Padhye and Others (2010)F4 SCC 378 : [2010] 4 SCR 15 – relied on.RBI vs. Peerless General Finance & Investment Co. Ltd.(1987) 1 SCC 424: [1987] 2 SCR 1; Dartmouth Collegev. Woodward, NH 4 Wheat 518, 636:4 L Ed 629 –referred to.GHalsbury’s Laws of England Fifth Edition, Vol. 24 –referred to.Case Law Reference[1981] 3 SCR 864relied onPara 14[1987] 2 SCR 1referred toPara 15 COMMISSIONER OF INCOME TAX(TDS) KANPUR v.CANARA BANK CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6020of 2018. From the Judgment and Order dated 04.04.2016 of the High Courtof Allahabad in ITA No. 64 of 2016. WITH C.A. Nos. 6064, 6056, 6058, 6055, 6060, 6057, 6054, 6066, 6065,6059, 6053, 6052, 6051, 6063, 6062, 6061 of 2018, 5378, 5374 of 2017,6023, 6021, 6031, 6025, 6022, 6034, 6027, 6048, 6026, 6028, 6032, 6029,6036, 6024, 6033, 6039, 6038, 6037, 6046, 6043, 6040, 6030, 6045, 6042,6041, 6047, 6049, 6044, 6035, 6050, 6069, 6068, 6067 and 6070 of 2018 K. Radhakrishnan, Balbir Singh, Adarsh B. Dial, Sr. Advs., H. R.Rao, D. L. Chidananda, Arijit Prasad, Shekhar Vyas, Deepak Prakash,Mrs. Anil Katiyar, Jasmeet Singh, Naman Joshi, Ms. Ruhsheet J. Saluja,Hemant Jain, S. N. Tayagrajan, R. S. Saluja, Maninder Singh, Ms. RubalMaini, Sandeep Chilana, Nitesh Shrivastava, Mohd. Raiz, Prabhu DayalChilana, Ms. Seema Joshi, SARC & Associates, Ms. Ananya DattaMajumdar, Rajiv Nanda, Ms. Sumati Anand, Pankaj Garg, Milind Garg,A. S. M. Tripathi, S. K. Jha, Mehvish Hameed, Suvidutt M. S., Ms. ArtiSingh, Ms. Pooja Singh, Mrs. Anil Katiyar, Ravi Prakash Mehrotra,Debesh Panda, Neil Chatterjee, V. D. Verma, Ravindra Kumar, Ms.Kavita Jha, Ms. Devika Jain, Debal Banerji, Ms. Meera Mathur, Advs.for the appearing parties. The Judgment of the Court was delivered by ASHOK BHUSHAN, J. 1. Leave granted. 2. These appeals question the Division Bench judgment dated04.04.2016 of the Allahabad High Court, by which judgment IncomeTax Appeals filed by the Revenue has been dismissed affirming theorder of the Income Tax Appellate Tribunal. The common questions offacts and law are involved in these appeals and it is sufficient to referthe facts and pleadings in Civil Appeal No.... 2018 arising out of SLP(C)3168 of 2017, Commissioner of Income Tax(TDS), Kanpur and Anr. vs. ACanara Bank wherein the judgment of the High Court dated 04.04.2016in ITA No. 64 of 2016 has been questioned. 4. writeral Saal oT Ural we Mad aot @ Uda FTs| aitenelf ext da@ al Gla We axe Gt Heldt 7 Oe G fayorBad sat dH HT & UN fay wtGH Ay gaa Yas GN Ht St ag _aldit| ea AIST gy 2005EN Vat aT Reafan@. 1338 wise HI a| Get Waray ant vlad Re uafapt ¥ wRa fey ae ofasa staRa feel & Gree freakHrdet tel Hl UT wet| Sealareas gt siadrica aka 28weal, 2011 ave aftfaiRa aed ev Re afar aRa aweat ag fe wfsra-pe ofafyay, 1961 Ht at 10(20) &salt ve wile wfae 8 sik Saat sa HI GY aBe Fel &| acaeard, Peake afsfert + sra-He sifelfras, 1961al IR 194mHh wey visa at 201(1)/201(1H)& seis aka28 Weal, 2013 H sires UIRa Hed Hl Hrelaret wt| 5. ar-py wifeA ve afifaiRa fear for veaell daafamn oe aren PaiRdt &| afta ol MrHt ag sikoTa-ay sifefray, 1961 Ht at 156 } sae AM aes vetalms| aka oral wt stom Y ARH Ht ag| Gady 4fFako sftfert @ axa 28 weal,2013 H srea apySat A-He sya (lel)G Baa silat wiga ot| dH4Aga H Mal ard-x sfeqas, 1961 Ht at 194%(iii)3) (a)® ad ake 22 saqay 1970 HT UN ot ag aleeGTsacta frat| atta wife4 aha 2 fearae 2013 G aAFrota art Petr sftort & snes ml sud Ged ey siltTORGT| word fart 4 aril wifeGS fora S aafaa Vlexarad-Hy aritet siffepeor H WHat atilet wise Ht| sift A ahwe aftafora fe dat grt weg itera fara wifeal fer me ani ® Garg wW AN 194H(3)(iii)(a)MaalGSA Uld W alg GHeldt Gea srafaa val s| 6. word faut + after p sreeGW ala eax aferHt IR 260m H selq Ved Vaeasd H Wa sila wiga aT|Vearea Hetic 4 athe 4 atta, 2016@ sa fvlaant sit wit @e a| Getio 4 ala aT GRA Hed ByPrafakaafrspy rare sic Ge wu aay at tes sel S fo Ales HI WoT |afrert afd fea wa é sik gufay de afefraa aGR 194H(1) S stellt Gla WW He H aly Y We HI Ha&| ae: = skagen sileiftre faora wiftreet (ayaa) Tel Ama + sa =a& fafasag O, forrer arfienfsal awfear on fe aust vp write offreé a sel sik gaaia 4 stadfera sa faarerp ux faasel fur war at feaa Aver use afifraa ert wifta va Fry é| ad:EH ear ent farfaa fafaGS WA w VaRARIAed = sie ve aftfaiRa ged € fe alvst saeyes sienfre aa frere sfefas, 1976 ae wiitawpfra er ft UTPA sea wares GH Getto H frota ot gall adBl ve cola a fo mitre, ae 194(3)(iii)(@)& aa otHl Ws aka 22 aay 1970 ot sya H wae HT SHaRaél &| Ge acter a as fe vale afiyan & alt GadPay, wer a vide aferras ara wifta Fra st sa wad a1Her &| mtr woy afefras eri wit fra sel & afewmiter vp tar Fra & fa 1976 G afefray @ seis woftafear war &| oewe aofta a fo fox afafhas er eiftaFrere sik feet afffaa & aria wnifta form & da qesae&| OR 194m H Vadel wr genta: sealsfar vrafer six gue waa daar ai fear or wea& va algProm sfiacr wr Y we H Hae S siiat sa et| aN1940(3) @ 3th vfeetad sare FS BAS FH reas| oafiertisa 4 fet we or yam ve oer @ ue fa ea alPom we & fay soar & ot fodl Gata, wor a idesfiraa et wifta fe ord &| ae aceite a ag fe wel aSUIT sed H sree fear oT afey sik ANA 22 staqay,1970 ot aifiyaa & arpa fore wea or wart feat waeSa aA: we vueseet & fe ve H aa oe Gwar & fac fra fel Gate, usa a vida afahayeriwaftd fear war ear afer| fet afafas@ sie wiita @| flan visda 4 ae acta a fe sra-nx srgad (stich),Ha-He Spel AGel Wares A ANG 22 AaGay 1970a aftraga ot de wor & sata7 aed aedpt & silkaR 194(3) (iii)(a) & aes wert SIG wraa fear zs| 3. The New Okhla Industrial Development Authority (NOIDA),hereinafter referred to as “Authority” has been constituted by Notificationdated 17.04.1976 issued under Section 3 of the Uttar Pradesh IndustrialBArea Development Act, 1976 hereinafter referred to as “1976 Act”.The Canara Bank, respondent No. 3 is the banker of the Authority. Therespondent Bank made a payment of Rupees Twenty Crores Ten Lakhsas interest to Authority in form of FDs/Deposits for the financial year2005-06. The Canara Bank, however, did not deduct tax at source underSection 194A of the Income Tax Act, 1961 hereinafter referred to asC“IT Act, 1961”. 4. Notices were issued by the appellant to Canara Bank askingfor information pertaining to interest paid to the Authority on its deposits.Notices were also issued by the appellant to the Bank for showing causefor not deducting tax at source. A writ petition had been filed by theDNOIDA being Writ Petition No.1338/2005 challenging the notices issuedto the Authority as well as its bankers. Assessment proceeding couldnot proceed due to certain interim directions passed by the High Court inthe above writ petition. The writ petition was ultimately dismissed by theHigh Court on 28.02.2011 holding that the Authority is not a local authorityEwithin the meaning of Section 10(20) of IT Act, 1961 and its income isnot exempt from tax. The Assessing Officer thereafter proceeded topass an order under Section 201(1)/201(1A) read with Section 194A ofthe IT Act, 1961 dated 28.02.2013. 5. Income Tax Authority held that the respondent Bank is assesseeFin default. The default was computed and demand notice as per Section156 of the IT Act, 1961 was issued. Penalty proceeding was also separatelyinitiated. The Canara Bank aggrieved by the order of the AssessingOfficer dated 28.02.2013 filed an appeal before the Commissioner ofIncome Tax (Appeals). Before the Commissioner, the bank relied onNotification dated 22.10.1970 issued under Section 194A(3)(iii)(f) ofGthe IT Act, 1961. The Appellate Authority vide its judgment dated02.12.2013 allowed the appeal setting aside the order of the AssessingOfficer. The Revenue aggrieved by the judgment of the AppellateAuthority filed an appeal before the Income Tax Appellate Tribunal.The Tribunal also held that payment of interests by the banks to the COMMISSIONER OF INCOME TAX(TDS) KANPUR v.CANARA BANK [ASHOK BHUSHAN, J.] State Industrial Development Authority does not require any deductionat source in terms of Section 194A(3)(iii)(f). 6. The Revenue aggrieved by the order of the Tribunal filed anappeal under Section 260A of the Act before the High Court. TheDivision Bench of the High Court vide its judgment dated 04.04.2016has dismissed the appeal. The Division Bench came to the followingconclusions while dismissing the appeal: “We have, therefore, no manner of doubt from a reading of theprovisions of the Industrial Area Development Act that the NOIDAhas been constituted by the State Act and, therefore, entitled toexemption of payment of tax at source under section 194-A(1) ofthe Act. The decision of the Division Bench of this Court in New OkhlaIndustrial Development Authority (supra), on which reliance hasbeen placed by learned counsel for the appellants, would, therefore,not come to the aid of the appellants as it was restricted to theissue as to whether NOIDA would be a local authority or not anddid not deal with the issue involved in this appeal as to whetherthe NOIDA is a Corporation established by a State Act. We therefore, answer the question of law framed by us in negativeand hold that NOIDA is a Corporation established by Uttar PradeshIndustrial Area Development Act, 1976. “ (IR OA G fers Yates fea war 2)8. fatter dat ot sie U afore em act fae wis oeeail4 sttenfral at aie G faewis orsta Ht salad allel HTGea far| ae acitea dt ag fe 1976 & sarfefraay wt ae 3 Awarwe wudiira@& fer, & fe fet “oy siete eer frwra aff aa @er, fer ga (aa sierra OT AM)@sitenRre frora wifeam a G wp wltpwHl WA wewertp we acta a mg & fe wit1976 & afefas hadi wifta &| aredia eee da afafray, 1955, urdla vitaarr fraftifas, 1956 & sudel al fifese ped By YE ceilata ag fe oat 4 Gale Goemt aflepaa } seme we PTAwita He or side far wa é| ve acta a ag fe set ahaqo wen aww aflgan oN oe wnfta far wa z,safe, wifemt i976& afefiaa ger wifta fear 7awasurafey| apniwy 8, ue aca dt ag fhfaertise F “grt sik stellt” Me VS-GUY G WI UE WgfHy& ol fe amet 194(3) (iii) (m) aie ar 194(3) (iii) (a) A KEz |194%(3) (iii) 4 A “art se ada”G stayHG Gara ape fearTa &, Sa HRI 1976 m sfdfraa ert waft wiley LS wTmiterB ake py22 weft seqay pet 1970 areft H orfepaa sfiya “ERI” H sila Ht sist sia HT e WI|oredl& safay Us aN 194H(3) (iii)H Hae GI sHa z | 9.amr ot sie 8 fleas ode7 ga zeae >fraoed waa fifese far ort| 10. SM aorwt sie S faapretell ot ceffeil wefra fea & sik afttera or Rafter feos é| acta arttel aTUe WcaI sa-Hx sforay, 1961 Ht at 194m H Uae Fs |IT 194m H Gadel HI Gea wen suai & ot fe frefertea “an ‘“fayfaal we anor @ ft ert — (1) Va GEafer, vt afe a feg siete pod vel & sik TH(aityfeat we art @ wr 4) ora a ft are GS wa A ogarg Pari a war oe or fete & UA act & UdFUP sa Hl GA Se WAG UW Gaal Awa wT F BM dHwre Ot a que cay a fet aa dG Waodwaa, sd S ot at dae a, ay Al S sqwa WRST-HYHT HeldHAM : RY va ae afera feg afaued peg, ferretvuge fey oT vw Grae a gfa 8 pa faa, aoewiftaat at sad, va fata as &, fora Val aot wT ated fea orn @ de ydadt fata qv @ eke an44na m Us () a Gs (w) @ sein fatfe~wvitaSarit U safle et crea & sa aew aes sra-gyx wtHeld & fay eat erm| eat — sa IR H warH fey, wet yargaradat @ St A Hrs sara wet ona ao dara oer @ fay aalfort afea at crat afeal 4 feet are4, ae ‘aca anGe a sid ae S a4 4 a fHsea aS a Bt,wT at ordt & get Wh OT WHA OT, UM ae G UM AUa sa Hl WAT VHA Was Iesik sa aNGH wadeTTAATT BHT | (3) Suet (1) H oud — (iii) VA sia of ary sel eh of Prefer oGd A Wa a dad a ag s — (>) ay doort ool,fa doort fafaaaafaifray, 1949 (1949HT 10) ay eat & at dor oI Oa oe A af eg (fora sina wert yAdup dm ft 8) HS WennGeisct; a (a) fort Gata, wor a vida afafas eR a@ seta wifta og facta Fora; a (7) ofteq drm Fria srffifas, 1956 (1956HT 31)@ aia wofta ada oat saaA; aT (a) uredta afic gre afaftay, 1963 (1963 OT52) & aewiita uredta afc Ge; A (Ss) 1 OER GaN Teil, oy HIT A Wentarasel; a (a) Oat ara den, Wa a frera strat Psi,art a fart a af fs data unr feftaa 4Awade foe aA ae orl @ arma 4 sa dda 4orfergfartbe P 11. Wea aaa F, vevelt are fora af&egeat wr sracia forayTa & de at 194%(3) (iii) (a) S sells UN Ht Ag aA 22HAIsa Uy 1970 afer Hl afferental fifese& pen safery arvaaR 22&, vil aay fe Priferkaa 1970 HTee. “SHEA UW. WA.3.3480 [. 170 (Ig Gi. 12/164/68-3T1S ARA/sTseta) J, 22.10.1970 ara-px aftifras, 1961(1961 HI 43) mt ARI 194Ht su(3)& Ws(iii) & sess (@) S syeT F,Gag WR vad vss G worom fav anFrafeked srftrgfia pedt & — (i)day,war a vide ofafaq ee enfta olsPra; Gi)rs SoA, fort wet vax (ars Vt ST A A WHea fare) aor a ada Rod do a va do (ii) Wor arwha: fara wg wIHA a fer, fier sieta arasdl eforedctpecr afeifyas, 1860 (1860HT21) & aris erected arasct até 12. Vatorwl uae fateh aceite Ht wen wet @ feysoe et S yd, Poe ot tacooT aftfigay Het sagas&| frm ve pf un et ot fe ww fata afd &| ve tag@ afaraaq a wae alex ant wita Pata fara &| saaura Wafer sie stare etd S GT SUH ASA HK Alel Alex EIafera arse wa 8 ved fey ond &| seta& alotsie sels, Urdat Gea, aeyy 24 A PH or A vor aukarfvafar ma & 7. Shri K. Radhakrishnan, learned senior advocate appearing forthe appellants challenging the Division Bench judgment of the High Courtcontends that Authority is not entitled for the benefit of Notification dated22.10.1970 issued under Section 194A (3)(iii)(f). It is submitted that underthe above notification only a Corporation established by Central, Stateor Provincial Actis entitled for the benefit. Authority is not a Corporationestablished by the State Act rather Authority is a Corporation which isestablished under 1976 Act. He submitted that there is a vast differencebetween a body established by an Act and a body established under anAct. The provisions of Section 194A have to be strictly construed andbenefit can be extended only when a body falls expressly within thebenefit of exemption. In the exceptions carved out under Section 194A(3)there is homogeneity in the group. The legislature when used a wordwith a limitation the same has to be read in the entire phrase and onlysuch corporations are entitled for the exemption which are established Abya Central, State or Provincial Act. It is submitted that words have tobe construed, in accordance with the intention and use of the word asper the Notification dated 22.10.1970, normally indicate that for purposesof claiming exemption the corporation has to be established by a Central,State or Provincial Act. The corporations established under an Actfallin a different category and are not entitled for exemption. He hasBsubmitted that CIT Appeals, Income Tax Tribunal as well as High Courterred in not correctly construing the Notification dated 22.10.1970 andhad wrongly extended benefit under Section 194(3)(iii)(f). 8. Learned senior counsel appearing for the different banks haverefuted the above submissions of learned senior counsel for theCappellants. It is submitted that Section 3 of 1976 Act provides that “theState Government may by notification, constitute for the purpose of thisAct, an authority to be called (Name of the area) Industrial DevelopmentAuthority, for any Industrial Development Area”. It is submitted thatAuthority is established under the 1976 Act. Referring to provisions ofDState Bank of India Act, 1955, Life Insurance Corporation of India Act,1956, it is submitted that statute provides for establishing of the corporationby virtue of a notification by the Central Government. It is submittedthat in similar manners Authority has been established by issuing anotification, hence, Authority has to be treated as established by the1976 Act. Alternatively, it is submitted that the legislature has used theEwords “by and under” interchangeably which is clear from the provisionsof Section 194A(3)(iii)(c) and Section 194A((3)(iii)(d). In the Section194A(3)(iii), itself differentiation in “by and under” has been done away,with that the Authority established by 1976 Act is clearly covered by theNotification dated 22.10.1970. The Notification dated 17.04.1976 Festablishing Authority fulfills the mandate of “by” hence it is clearlyentitled for the benefit of the Section 194A(3)(iii). 9. Learned counsel for