2. Union Bank of India vs. Additional Commissioner of Income Tax (TDS), Kanpur Civil Appeal Nos. 1861-1862 of 2022 (Arising out of SLP (C) Nos. 9693-9694 of 2019) Date of order: 7th March, 2022
Deduction of tax at source – Section 194A - The Appellant was not required by the provisions of Section 194A of the Income Tax Act 1961 to deduct tax at source on payments of interest made to the Agra Development Authority in view of Notification dated 22nd October, 1970 issued by the Central Government.Before the Supreme Court, appeals arose from a judgment of a Division Bench of the High Court of Judicature at Allahabad dated 20th November, 2018. These appeals pertained to A.Ys. 2012-13 and 2013-14.
The issue which was raised in the appeals before the High Court was whether the Appellant was required by the provisions of Section 194A of the Income Tax Act 1961 to deduct tax at source on payments of interest made to the Agra Development Authority.
The Supreme Court noted that the Agra Development Authority is a statutory body constituted under the UP Urban Planning and Development Act 1973.
The Supreme Court observed that the Appellant placed reliance on the provisions of a notification dated 22nd October,1970 issued by the central government in the following terms:
“In pursuance of Sub-clause (f) of Clause (iii) of Sub-section (3) of Section 194A of the Income-tax Act, 1961 (43 of 1961), the Central G
