Supreme Court to rule whether Noida is a corporation under UP state law or not
The Supreme Court has agreed to examine a plea of the income tax department whether the North Okhla Industrial Development Authority (NOIDA) is a corporation established by the Uttar Pradesh government under the state industrial development law or not.
New Delhi: The Supreme Court has agreed to examine a plea of the income tax department whether the Noida is a corporation established by the Uttar Pradesh government under the state industrial development law or not.
A bench of Justices RK Aggarwal and AM Sapre has said it will look into the appeal filed by the Income Tax department against an order of the Allahabad High Court which held that Noida is a corporation established under the Act and, therefore, banks are not liable to deduct income tax at source on fixed deposits.
The apex court has also refused to grant any stay on the high court direction to the Income Tax department and asked the banks to file their counter affidavit in four weeks.
Appearing for Punjab National Bank, counsel Pankaj Garg, assisted by another lawyer Milind Garg, told the bench that the appeal of the Income Tax department is not maintainable as Noida is a corporation established by the state law and banks are not under the statutory obligation to deduct and pay the income tax.
The dispute on the issue first arose in 2013, when the Income Tax department imposed a tax liability on the banks for non- deduction of TDS on the interest income on fixed deposi receipts (FDRs) of NOIDA.
Against the decision to levy tax, the banks preferred an appeal before the Commissioner of Income Tax (Appeals) (CIT-A), saying the Noida is a corporation.
The appeal was decided in favour of the banks and, thereafter, the department preferred a petition before the Income Tax Appellate Tribunal (ITAT), which again decided in the favour of the banks.
The department then moved the Allahabad High Court against the order of the ITAT, but once again the appeal was decided against it.
The Income Tax department appeal before the apex court has said that the issue for consideration is whether Noida is a corporation entitled for exemption from deduction of income tax at source under the provisions of a notification issued in 1970 under the Income Tax Act.
It has said that the high court erred in holding that NOIDA is covered under exemption from TDS under the Income Tax Act and the assesse banks are not liable to deduct tax at source on interest paid to the Noida on its FDRs.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Farmers' Protest Updates: ML Khattar should tell Centre to repeal laws instead of holding outreach events, says Hooda
Farmers' Protest LIVE Updates: On Sunday, Haryana Police had used water cannons and lobbed teargas shells to prevent the farmers from marching towards the venue of Khattar's event
The farmers have not only categorically refused to engage with the said 'expert panel', which includes two domain experts and two farmer leaders, but have also asserted that their tractor march on Republic Day will be held as per schedule
Bhupinder Singh Mann recuses himself from SC-appointed panel to resolve deadlock between farmers, Centre
The 81-year-old resident of Punjab’s Batala is the national president of BKU and was also an Independent Rajya Sabha member from 1990 to 1996