ANSAL PROPERTIES & INFRASTRUCTURE LIMITED,DELHI vs. DCIT, CIRCLE-73(1), NEW DELHI

PER M. BALAGANESH, A. M.: 1. The appeals in ITA No. 5645 to 5648/Del/2024 for AYs 2015-16 to 2017-18 and 2019-20, arise out of the order of the ld. Commissioner of Income Tax (Appeals)-24, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 21.11.2024 for AY 2015-16, 2017-18, 19.11.2024 for AYs 2016-17 and 2019-20 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 31.05.2024, 29.03.2023, 29.03.2024, 06.06.2023 by the Assessing Officer, DCIT, Circle-73(1), New Delhi (hereinafter referred to as ‘ld. AO’). Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience.

ITA Nos. 5645 to 5648/Del/2024
Ansal Properties & Infrastructure Ltd
2. Though the assessee has raised several grounds before us, the only identical issue to be decided in all these appeals is as to whether the assessee could be treated as assessee in default under section 201(1) of the Act and consequential levy of interest under section 201(1A) of the Act in respect of non-deduction of tax at source in terms of section 194C of the Act for External Development Charges (EDC) paid to HUDA in the facts and circumstances of the instant case.
3. None appeared on behalf of the assessee. Since the issue is covered by the decision of Hon’ble Delhi High Court, these appeals were heard on hearing the Learned DR and based on materials available on record. It is not in dispute that the assessee had made payment of EDC charges to HUDA without deducting tax at source. Pursuant to the survey/ inspection carried out at the office of Haryana Urban Development Authority (HUDA) under section 133A of the Act by the TDS wing of the Income Tax
Department, Panchkula on 4-12-2018, it was noticed that EDC received by HUDA from private developers / colonizers without deduction of tax at source. Accordingly, proceedings under section 201(1)/201(1A) were initiated in the case of the assessee by issuing notice on 5-7-2022 on the ground that HUDA is a taxable entity and EDC paid by assessee to HUDA has character of income in the hands of HUDA, thereby liable for deduction of tax at source. We find that this issue was subject matter of consideration by the Hon’ble Juri ictional High Court in the case of Puri construction reported in 159 taxmann.com 444 (Del HC) vide order dated
13-2-2024 wherein it was held that provisions of section 194C of the Act would get attracted in respect of EDC paid by real estate developers to HUDA. We find that the learned CITA had followed the decision of Hon’ble
Juri ictional High Court and held that EDC paid by the assessee without deduction of tax at source to HUDA makes the assessee as ‘assessee in ITA Nos. 5645 to 5648/Del/2024
Ansal Properties & Infrastructure Ltd default’ in terms of section 201(1) of the Act and consequentially liable for levy of interest under section 201(1A) of the Act. We do not find any infirmity in the said order of the learned CITA. Accordingly, the grounds raised by the assessee are hereby dismissed.
4. In the result, all the appeals of the assessee are dismissed.

Order pronounced in the open court on 30/07/2025. - - (SUDHIR KUMAR)
ACCOUNTANT MEMBER

Dated: 30/07/2025
A K Keot