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3. The facts for both the appeals are identical therefore, we are taking up the facts of A.Y. 2013-14. During the course of verification, it was noticed by the Assessing Officer the assessee made payment of interest on FDRs to Gr. Noida Authority during F.Y 2012-13, relevant to A.Y 2013-14, but TDS was not deducted on the interest paid to Gr. Noida Authority/ Noida Authority on the FDRs, as was obligatory on the part of the bank under the provisions of Section 194A of the Income Tax Act, 1961. Notice dated 07.10.2014 issued to the assessee to furnish details of payment of interest paid on FDRs to Noida Authority/Gr. Noida Authority. The assessee bank furnished the details of interest paid, which are as under:

A show cause notice dated 7/10/2014 was issued to the assessee bank. The assessee bank during the course of proceedings stated that Gr. Noida Authority had given a declaration to banks that it is exempted from taxation since it is a local authority. Hence the assessee bank has not deducted any tax. The A.O observed that the declaration issued by Gr. Noida Authority had no legal sanctity and banks were not required to take cognizance of such an Act. If the income of Gr. Noida Authority was not taxable, they should have applied to the A.O. for a certificate under section 197 for lower deduction of tax and provided it to the banks. The assessee has not produced any certificate under section 197 to support NIL deduction of TDS on interest. The Assessing Officer further observed that Noida Authority/Greater Noida Authority are not covered under the exemption u/s 194A(3)(iii)(f) of the Income Tax Act, 1961. Thus, the Assessing Officer held that the exemption is allowable to only such corporation established by a State, Central or provincial Act and not under such Acts. Hence, CBDT notification No. S.O. 3489 dated 22.10,1970 is not applicable in the present case. The Assessing Officer further held that the assessee itself admitted that Noida Authority/Greater Noida Authority are formed under U.P. Industrial Area Development Act, 1976 passed by the State Govt. Thus the Assessing Officer held that Noida Authority does not fall under any exemption clause nor Noida Authority is a local Authority as has been held by the Allahabad High Court dated 28.02.2011. Hence, TDS provisions are applicable in the case of Noida Authority. Unless a certificate u/s 197 from the department is produced by the authority, banks are liable to deduct tax at source on payment of interest to the authority. As per Section 194 A of the I.T. Act, 1961 and board notification bank was liable to deduct the tax at source on interest payment credited to Greater Noida Authority. However, bank has failed to deduct the same and pay to the Central Govt. without verifying the applicability of above referred notification from the Income Tax Department. The status of Greater Noida Authority as Local Authority has also not been accepted by Hon'ble High Court Allahabad in Writ Petition Tax No. 1338 of 2005 vide order dated 28.02.2011. Therefore the assessee bank has to deduct TDS on payment of interest on FDRs to Gr. Noida Authority and pay to the Central Govt. Account. However, the assessee has not followed the provisions of Income Tax Act, 1961. The assessee did not deduct TDS on payment of interest on FDRs on the basis of the letter provided by the Gr. Noida Authority, while TDS should be deducted on this payment and deposited in the government account without any delay as per tire provisions of Income Tax Act, 1961. Thus the Assessing Officer held that tax is deductible @ 10% under section 194A of the Income Tax Act, 1961 which assessee failed to do so and the assessee is in default. Total short charge u/s 201(1) is computed at Rs.1,37,650/- Noida Authority and interest thereon u/s 201(1A) is Rs. 41,295/-. Thus the total demand on account of short charge and interest worked out at Rs.1,78,945/- by the Assessing Officer.

4. Being aggrieved by the order u/s 201(1)/201(A) the assessee filed appeal before CIT(A). The CIT(A) dismissed the appeal of the assessee.

5. The Ld. AR submitted that the assessee is a public sector bank. The CIT(A) grossly ignored all binding precedents specifically raised before him and held that the assessee was allegedly liable to deduct tax at source (TDS) u/s 194A from the interest payments paid/credited to NOIDA Authority and Greater NOIDA Authority and thereby CIT(A) treated the assessee bank as assessee in default by confirming order passed by the Addl. CIT(TDS) under section 201(1)/201(1A), raising a demand of Rs. 235,63,873/- for AY 2014-15 and Rs. 1,78,945/- for AY 2013-14. The Ld. AR further submitted that the assessee was not required to deduct any TDS u/s 194A because the NOIDA Authority and Greater NOIDA Authority fall in exempted category provided in Section 194A(3)(iii)(f) of the Act covered vide notification No. CBDT SO No. 3489 dated 22/10/1970; as both the above authorities are Corporation established by State Act namely U.P. Industrial Area Development Act, 1976. The Ld. AR submitted that the said matter is already examined in much details by the Tribunal, Delhi in numerous appeals as cited hereunder, wherein it is categorically held that above authorities fall in exempted category provided in section 194A(3)(iii)(f), covered vide notification No. CBDT SO No. 3489 dated 22/10/1970:-

CIT (TDS). The answer to the observation of the CIT-A has already been addressed by the Tribunal in ITA 5968 to 5974/Del/2015 in case of Central Bank of India Vs Addl. CIT(TDS). The Ld. AR pointed out that the Order of the Tribunal in ITA No. 1359/Del/2014 dated 07-08-2015 in Addl. CIT (TDS) vs. Canara Bank, stood confirmed, approved and upheld by the Hon'ble Allahabad High Court. In the case of Commissioner of Income Tax (TDS) and another Vs Canara Bank [2016] 386 ITR 504 (All) and therefore all the premise, observations and comments of the Id. CIT-A in his impugned order, under appeal, stood quashed by the Hon'ble Allahabad High Court, which is a jurisdictional High Court in relation to the present appeals and thus having binding precedent. In view of all the above facts, circumstances and the settled legal position, it becomes aptly and abundantly clear that the assessee bank was not obliged to deduct any TDS from the interest paid/credited to Noida Authority/Greater Noida Authority by virtue of the specific provisions of section 194A(3)(iii)(f) as held in all above cases and upheld by the jurisdictional High Court as cited above and therefore the appellant bank cannot be treated as assessee in default u/s 201(1)/201(1 A) and therefore the order passed by the. CIT-A is liable to be quashed and the assessee deserves to succeed in appeals. The Ld. AR further submitted that the issue is squarely covered by the decision of the Jurisdictional High Court i.e. Allahabad High Court in case of Canara Bank. Therefore, the appeal of the assessee be allowed.