TREHAN PROMOTERS AND BUILDERS PVT LTD. vs. PRINCIPAL COMMISSIONER OF INCOME TAX -1 NEW DELHI & ANR.
What did the High Court hold?
The High Court acknowledged that the issue stands concluded so far as the High Court is concerned, citing its own judgment in Puri Construction Private Limited. However, the Court could neither admit the appeal nor keep it pending indefinitely, as the Supreme Court's final decision might take time. Consequently, the appeal was disposed of with the observation that the fate of the judgment passed by the Supreme Court in M/s Florentine Estates Of India Ltd. will bind both parties. Until the Supreme Court decides the matter, the recovery of the disputed demand against the appellant is stayed. If the Supreme Court decides in favour of the assessees, they can move an application to drop the demand. If decided against the assessees, the Department can enforce the demand. No specific finding was given on the merits of the ITAT's order, as the appeal was disposed of on procedural grounds pending the Supreme Court's decision.
What were the facts?
The appellant, Trehan Promoters and Builders Pvt Ltd., is challenging an order dated 29.10.2025 passed by the Income Tax Appellate Tribunal (ITAT), 'G' Bench, New Delhi. The ITAT had dismissed ITA No. 2058/Del/2025 for Assessment Year 2015-16. The core issue revolves around Tax Deducted at Source (TDS) on External Development Charges. The Revenue, represented by the Principal Commissioner of Income Tax -1 New Delhi and another, is the respondent. The appellant sought to have the appeal kept pending until the Supreme Court decides a related matter, praying for interim relief similar to that granted in another case.
What were the issues?
1. Whether the appeal should be admitted and heard on merits, or kept pending until the Supreme Court decides a related matter concerning TDS on External Development Charges? (Question of law and fact, turning on procedural fairness and the impact of pending higher court decisions). Assessee's Contentions: - Relied on the interim order dated 20.08.2024 by the Supreme Court in SLP (C) No. 11614/2024 (M/s Florentine Estates Of India Ltd. v. Union Of India), which granted interim relief by staying coercive measures against assessees. - Prayed that the present appeal be kept pending until the Supreme Court's final decision in the aforementioned matter and that similar interim relief be granted. Revenue's Contentions: - Submitted that the issue has been settled by the Delhi High Court in the case of Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors reported in (2024) 462 ITR 326 (Delhi). - Did not explicitly argue against keeping the matter pending or for immediate dismissal on merits, but rather highlighted the binding precedent of the High Court.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2026
By way of the present appeal, the appellant has challenged the order dated 29.10.2025 of the Income Tax Appellate Tribunal, ‘G’ Bench, New Delhi (hereinafter referred to as ‘the Tribunal’), whereby ITA No. 2058/Del/2025 pertaining to Assessment Year (AY) 2015-16 has been dismissed.
The issue involved in the present case is regarding TDS on External Development Charges.
Mr. Siddhartha Sinha, learned Senior Standing Counsel for the Department, at the outset, submitted that the issue has been set at rest by this Court in the case of Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors reported in (2024) 462 ITR 326 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/05/2026 at 11:55:57
(Delhi).
Learned counsel for the appellant, at this juncture, pointed out that against the above referred judgment, affected assessee has preferred a Special Leave Petition being SLP (C) No. 11614/2024 titled as M/s Florentine Estates Of India Ltd. v. Union Of India, in which Hon’ble the Supreme Court has granted interim relief vide order dated 20.08.2024 to the effect that no coercive measure shall be adopted against the assessees. He prayed that till the matter is decided by Hon’ble the Supreme Court, the matters be kept pending and interim relief as has been given by the Supreme Court be granted.
Heard learned counsel for the parties.
There cannot be any quarrel over the issue that so far as this Court is concerned, the matter stands concluded. Hence, we can neither admit the appeal nor can we keep the present appeal pending till indefinite period, as the final decision by Hon’ble the Supreme Court may take some time.
We, therefore, dispose of the appeal by observing that fate of the judgment passed by Hon’ble the Supreme Court in the case M/s Florentine Estates Of India Ltd. (supra) shall bind both the parties.
Until the matters are decided by Hon’ble the Supreme Court, recovery of the disputed demand against the appellant shall remain stayed. In case the SLP/appeal is finally decided by the Supreme Court in favour of the assessee(s), they shall be free to move appropriate application before the Assessing Officer to formally drop the demand.
In case the matter is decided by Hon’ble the Supreme Court against the assessee, the Department shall be free to enforce the demand in accordance with law. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/05/2026 at 11:55:57
Appeal stands disposed of alongwith all pending applications. DINESH MEHTA, J VINOD KUMAR, J MAY 19, 2026/ss This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/05/2026 at 11:55:57
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