DEEPANSHU PROJECTS PRIVATE LIMITED vs. INCOME TAX OFFICER, WARD 74(1), AAYAKAR BHAWAN, LAXMI NAGAR, NEW DELHI 110092 & ANR.
What did the High Court hold?
The Delhi High Court acknowledged that, as far as the High Court is concerned, the matter stands concluded by its own judgment in Puri Construction Private Limited. Therefore, the Court cannot admit the appeals or keep them pending indefinitely, as the Supreme Court's decision may take time. The Court disposed of the appeals by stating that the fate of the judgment from the Supreme Court in M/s Florentine Estates Of India Ltd. will bind both parties. Until the Supreme Court decides, recovery of the disputed demand against the appellant is stayed. If the Supreme Court rules in favour of the assessees, they can apply to drop the demand. If the ruling is against the assessees, the Department can enforce the demand. No specific finding was made on the merits of the TDS issue itself, as the appeals were disposed of based on the pendency of the Supreme Court matter.
What were the facts?
The appellant, Deepanshu Projects Private Limited, has filed appeals challenging the order dated 26.11.2025 of the Income Tax Appellate Tribunal (ITAT), which dismissed their appeals for Assessment Years 2014-15 and 2016-17. The core issue pertains to Tax Deducted at Source (TDS) on External Development Charges. The Revenue contended that the issue was settled by this Court in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors. The appellant, however, brought to the court's attention that a Special Leave Petition (SLP) against the Puri Construction judgment was filed by M/s Florentine Estates Of India Ltd. before the Supreme Court, where interim relief was granted on 20.08.2024, staying coercive measures against assessees.
What were the issues?
1. Whether the appeals filed by the appellant should be admitted and kept pending until the Supreme Court decides the SLP in M/s Florentine Estates Of India Ltd. v. Union Of India, concerning the issue of TDS on External Development Charges, thereby seeking interim relief in line with the Supreme Court's order. Assessee's Contention: The appellant argued that the Supreme Court has granted interim relief in a related matter, staying coercive measures against assessees. They prayed for the present appeals to be kept pending until the Supreme Court's final decision and for similar interim relief to be granted. Revenue's Contention: The Revenue submitted that the issue of TDS on External Development Charges has been settled by the Delhi High Court in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors. The judgment does not record any specific counter-argument from the Revenue regarding the prayer for keeping the appeals pending or granting interim relief.
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Cause title — parties, addresses and appearances
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 20/05/2026 at 16:15:54
CORAM:
HON'BLE MR. JUSTICE DINESH MEHTA
HON'BLE MR. JUSTICE VINOD KUMAR
%
2026 O R D E R
By way of the present appeals, the appellant has challenged the order dated 26.11.2025 of the Income Tax Appellate Tribunal, “C” Bench, Delhi (hereinafter referred to as ‘the Tribunal’), whereby ITA No. 4871/Del/2025 and ITA No. 4872/Del/2025 pertaining to Assessment Years 2014-15 and 2016-17 respectively, have been dismissed .
The issue involved in the present case is regarding TDS on External Development Charges.
Ms Monica Bejnamin, learned Junior 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 (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. 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 20/05/2026 at 16:15:54
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 appeals nor can we keep the present appeals pending till indefinite period, as the final decision by Hon’ble the Supreme Court may take some time.
We, therefore, dispose of all these appeals 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.
Appeals stand disposed of alongwith all pending applications.
DINESH MEHTA, J
VINOD KUMAR, J MAY 18, 2026/dd 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 20/05/2026 at 16:15:54
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