SKYTECH CONSTRUCTION PRIVATE LIMITED,NEW DELHI vs. INCOME TAX OFFICER, NEW DELHI

ITA 3179/DEL/2026Status: DisposedITAT Delhi09 September 2026AY 2014-155 pages
AI SummaryRemanded

What were the facts?

The assessee paid lease rent to development authorities without deducting TDS, claiming exemption for local authorities. The AO treated the assessee in default for non-deduction of TDS and charged interest.

What did the Tribunal hold?

The Tribunal held that the assessee was liable to deduct TDS on lease rent paid to development authorities, as per Supreme Court precedent. However, the AO should have provided an opportunity to demonstrate eligibility under the proviso to Section 201(1).

What were the issues?

Whether lease rent paid to development authorities is liable for TDS under Section 194-I and whether the assessee should be given an opportunity to prove eligibility under the proviso to Section 201(1).

Which sections of the Income-tax Act were involved?

Section 194-I,Section 201(1),Section 201(1A),Section 10(20),Section 10(20A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, G: NEW DELHI

Before: SHRI ANUBHAV SHARMA & SMT. RENU JAUHRI

For Appellant: Shri Santosh Pathak, FCA
For Respondent: Shri Rubal Singh, Sr. DR
Hearing: 04.08.2026Pronounced: 09.09.2026

Per Renu Jauhri, Accountant Member:

This appeal by the assessee is directed against the order dated 08.01.2026 of the Ld. Commissioner of Income Tax, (Appeal), ADDL/JCIT (A)-1 Pune, [hereinafter referred to as the ‘Ld. CIT(A)] arising out of the Order dated 03.03.2021 passed under section 201 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by ITO, ward-77(3), New Delhi (hereinafter referred to as the ‘AO’) pertaining to Assessment Year (A.Y.) 2014-15. ITA No.- 3179/Del/2026 Skytech construc"on Pvt. Ltd.

2.

The Assessee has raised the following grounds of appeal:

“ 1. Action of Commissioner of Income Tax Appeal in

The order continues below.

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