Dismissing the appeal of the Revenue the Court held that from a conjoint reading of section 194A and SO 3489 dated 22-10-1970, it becomes abundantly clear that, apart from others, a corporation established by a Central, State or Provincial Act is exempt from the operation of sub-section (1) of section 194A and such corporation is, thus, not obliged to deduct TDS on the interest payment made by it to the payee. The issue raised i.e., whether the JDA is a corporation established by or under the State Act, is no longer res integra as the Hon’ble Supreme Court has dealt with the similar issue in the case of CIT (TDS), Kanpur v. Canara Bank, [2018] 95 taxmann.com 81/257 Taxman 12/406 ITR 161 (SC) and based on this ratio the inescapable conclusion would be that the assessee-bank shall not be obliged to deduct TDS from the interest payments made to the JDA on its amount kept in FDRs. (AY.2010-11,  2011-12).