Dismissing the appeal of the assessee , the Court held that New Okhla Industrial Development Authority (NOIDA) is not covered by the word /expression of ‘Municipality’ in clause ( e ) of Article 243P. It is neither included in sub-clause (ii) of Explanation , nor it covered by S.10(20) except clause (ii).NOIDA was constituted under S. 3 of the U.P. Industrial Area Development Act, 1976 by notification dt. 17 -4-1976. The Act was enacted by State Legislature to provide for the constitution of an Authority for the development of certain areas in the State of UP in to industrial and urban township , under the 1976 Act , various functions had been entrusted to the Authorities . Thus NOIDA is not a local authority , hence is not exempted from payment of income-tax under S. 10(20) and S.10(20A) of the Act. ( CA Nos 792-793 of 2014, dt. 02.07.2018) ( AY.2003-04, 2004 -05)
New Okhla Industrial Development Authority (NOIDA)(No.1) v. CCIT ( 2018) 406 ITR 178/ 256 Taxman 396/ 303 CTR 448/ 168 DTR 48(SC)/ www.itatonlin.org
S. 10(20): Local authority –Industrial township referred to in proviso to Article 243Q is not equivalent to a “municipality” and a “local authority” – Income is not entitle to exemption .[S.10(20A), Art. 243P,243Q ]