ANSAL HOUSING LIMITED,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, DELHI

ITA 6795/DEL/2026Status: DisposedITAT Delhi18 September 2026AY 2015-1612 pages
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What were the facts?

The assessee, M/s Ansal Housing Limited, is in appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Addl./JCIT(A)-9, Mumbai. The original order under Section 201(1) read with Section 201(1A) of the Income-tax Act, 1961, was passed by the Income Tax Officer, Ward-73(1), New Delhi, for the financial year 2013-14 (Assessment Year 2014-15). The dispute pertains to the non-deduction of Tax Deducted at Source (TDS) on External Development Charges (EDC) amounting to ₹8,71,25,500 paid to HUDA during FY 2013-14. The assessee raised an additional ground of appeal concerning the limitation period for passing the order. The appeals are for Assessment Years 2014-15 and 2015-16.

What did the Tribunal hold?

For ITA No.6794/Del/2026 (AY 2014-15), the Tribunal admitted the additional ground of limitation, holding it to be a purely legal issue arising from facts on record, citing National Thermal Power Company Limited. The Tribunal found that the payment of EDC was made in FY 2013-14. The six-year limitation period under Section 201(3) expired on 31.03.2020. However, the Assessing Officer passed the order on 31.03.2021, which was one year after the expiry of the limitation period. Therefore, the order was quashed as barred by limitation. Consequently, the issue on merits regarding TDS on EDC charges became academic and was dismissed. For ITA No.6795/Del/2026 (AY 2015-16), the Tribunal noted that the learned CIT(A) had dismissed the appeal on the issue of Section 201(1) but remanded the matter for interest under Section 201(1A). Relying on the decision in Deputy Gothwal Constructions (P.) Ltd. Vs. DCIT, the Tribunal remitted the matter back to the Assessing Officer to verify whether the conditions stipulated in the first proviso to Section 201(1) of the Act have been fulfilled. If fulfilled, the assessee cannot be saddled with any liability under Section 201(1)/201(1A).

What were the issues?

1. Whether the order passed by the Assessing Officer under Section 201(1) read with Section 201(1A) of the Income-tax Act, 1961, dated 31.03.2021, for the financial year 2013-14 (AY 2014-15) is barred by limitation, considering the provisions of Section 201(3) of the Act. Assessee's Contention: The assessee argued that the order was passed beyond the six-year limitation period prescribed under Section 201(3) as applicable to FY 2013-14, which expired on 31.03.2020. The amended seven-year period, effective from 01.10.2014, cannot be applied retrospectively. They relied on the decision of the Hon'ble Supreme Court in National Thermal Power Company Limited Vs. CIT. Revenue's Contention: The revenue contested the admissibility of the additional ground but did not controvert the fact situation. They stated that the order was passed within the stipulated period and that any defect was curable. 2. Whether TDS is to be deducted on External Development Charges (EDC) paid to HUDA. 3. Whether the matter should be remanded back to the Assessing Officer for verifying the conditions stipulated in the first proviso to Section 201(1) of the Act, as per the decision in Deputy Gothwal Constructions (P.) Ltd. Vs. DCIT.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 201(3),Section 194C,Section 139,Section 221,Section 271C,Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH-A : NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI S. RIFAUR RAHMAN

For Appellant: Shri Gaurav Jain, Shri Tarun Chanana, Advocates
For Respondent: Shri Balkishan Gopal, Senior DR
Hearing: 14.09.2026Pronounced: 18.09.2026

Per Mahavir Singh, Vice President:

These appeals by the assessee are arising out of the order of Addl./JCIT(A)-9, Mumbai in appeal No.NFAC/2013-14/10040611, order dated 23" April, 2026. The order under Section 201(1) read with Section 201(1A) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) was passed by the Income Tax Officer, Ward-73(1), New Delhi for the financial year 2013-14 vide order dated 31% March, 2021. 2. At the outset, learned Counsel for the assessee drew our attention to the application filed by the assessee under Rule 11 of the Income Tax (

The order continues below.

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