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7. The GNOIDA further argues that in the explanation to Section 10(20) of the Income Tax Act, 1961, a "Municipality as referred to in clause (e) of Article 243P of the Constitution" falls under the ambit of a "local authority". Reliance is placed on Article 243P clause (e) of the Constitution of India, which states that ―Municipality means an institution of self government constituted under Article 243Q‖. Further reliance is placed on Section 3 of the Uttar Pradesh Industrial Development Act, 1976 (hereinafter to as "the UPIDA") under which GNOIDA is constituted. It is submitted that the Government of Uttar Pradesh by Notification No. 4157 HIjXVIII-11 dated 17.04.1976 notified the GNOIDA as the authority constituted under Section 3 of the UPIDA. The GNOIDA points out that the statement of objects of the UPIDA states:-

'an act to provide for the constitution of an Authority for the development of certain areas in the State into industrial and urban township and for matter connected therewith.' This clarifies that GNOIDA was constituted for the purpose of planning, development or improvement of cities, towns and villages. In this regard, it is further submitted that the Noida Industrial Development Authority has been declared as an "Industrial Township" with effect from 24th December, 2001 by the Governor of Uttar Pradesh in exercise of the powers under the proviso to clause (1) of Article 243Q of the Constitution of India.

(iv) Cantonment Board as defined in Section 3 of the Cantonments Act, 1924 (2 of 1924)‖ A municipality under Article 243P ―means an institution of self government constituted under Article 243Q". Article 243Q it provides as follows:

―243Q. (1) There shall be constituted in every State,--
(a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area;
(b) a Municipal Council for a smaller urban area; and

16. As to the other submissions of GNOIDA that its collections - towards lease deed are by way of tax and other payments are extractions by use of sovereign power, are equally untenable. Article 243P specifies that municipalities - as defined by Article 243Q are to be treated as such. The proviso to Article 243Q carves out an exception that certain units which provide municipal services and are industrial townships may be declared as such. Now this is recognition of the fact that industrial townships per se need not be statutory bodies; they can be private entities as well. Jamshedpur in Bihar with a population of a million plus, is maintained by the Jamshedpur Utilities and Services Company Ltd, a private entity. It provides all the essential municipal services; yet the city has no "official" or statutory municipal corporation. Therefore, whenever the nature and characteristics of the services provided by an entity or corporation- irrespective of statutory grant by the state (or lack of profit motive, or even that it has attributes or trappings of state or its power), are such that it is essentially or mainly an industrial township, and its governing structure is not "self-governing", the power under Article 243Q is exercised. GNOIDA cannot obviously challenge that exercise of power. It follows, therefore, that it is not a municipality. Therefore, its contentions that it is a municipality and entitled to the benefit of Section 10 (20) are without merit.