DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-75(1), DELHI, INCOME TAX OFFICE LAXMI NAGAR vs. MAHAGUN (INDIA) PRIVATE LIMITED, NEW DELHI

ITA 381/DEL/2026Status: DisposedITAT Delhi18 August 2026AY 2013-145 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee cannot be treated as an assessee in default for non-deduction of TDS on lease rent paid to GNOIDA, following previous decisions of the ITAT and the Delhi High Court. The additions made by the AO were rightly deleted by the CIT(A).

What were the facts?

The assessee paid lease rent to Greater NOIDA Industrial Development Authority (GNOIDA) but did not deduct TDS. The AO treated the assessee as an assessee in default and levied tax and interest. The CIT(A) deleted the additions based on a Delhi High Court ruling and a CBDT notification.

What were the issues?

Whether the assessee is liable for non-deduction of TDS on lease rent paid to a development authority, and whether previous judicial pronouncements and notifications exempt such payments from TDS.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 194I,Section 201(1A),Section 10(46)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘C’: NEW DELHI

Before: S RIFAUR RAHMANSUNIL KUMAR SINGH

Hearing: 02.07.2026Pronounced: 18.08.2026

PER: SUNIL KUMAR SINGH, JUDICIAL MEMBER

This appeal is directed against the impugned order dated 11.09.2025 passed in appeal No CIT(A), Delhi-26/10051/2012- 13 by the ld. Commissioner of Income Tax(Appeals), Delhi (hereinafter referred to as the “CIT(A) u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y. 2013-14, wherein ld CIT(A) has allowed assessee’s appeal and deleted the addition made u/s 201(1) r.w.s 194I and 201(1A) r.w.s 194I(b) of the Act.

2.

The brief facts of the case are that the appellant assessee, is engaged in the business of real estate and entered into a lease agreement with Greater NOIDA Industrial Development Authority (GNOIDA) on 24.11

The order continues below.

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