TULIP INFRATECH PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 76(1), NEW DELHI
What did the High Court hold?
The High Court acknowledged that, so far as the High Court was concerned, the matter was concluded by its own judgment. However, it noted that since the matter was pending before the Supreme Court, the appeals could not be kept pending indefinitely. Consequently, the Court disposed of the appeals by observing that the fate of the judgment of the Supreme Court in M/s Florentine Estates Of India Ltd. would bind both parties. Until the Supreme Court's decision, recovery of the disputed demand against the appellant was stayed. If the Supreme Court decided in favour of the assessees, they could move for the demand to be dropped. If decided against the assessees, the Department could enforce the demand. The right of the appellant to approach the Supreme Court was reserved. No specific finding was given on the merits of the TDS issue itself, as the appeals were disposed of based on the pendency before the Supreme Court.
What were the facts?
The appeals before the Delhi High Court concerned the issue of Tax Deducted at Source (TDS) on External Development Charges. The Revenue contended that the issue was settled by this Court's judgment in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors. The Assessee, Tulip Infratech Private Limited, pointed out that a Special Leave Petition (SLP) had been filed before the Supreme Court against a similar judgment, and interim relief had been granted, staying coercive measures against assessees. The Assessee prayed for the appeals to be kept pending until the Supreme Court's decision and for similar interim relief.
What were the issues?
1. Whether the issue of TDS on External Development Charges is concluded by the Delhi High Court's judgment in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors? (Question of law) Contentions: Assessee: Submitted that a Special Leave Petition (SLP) has been filed before the Supreme Court in M/s Florentine Estates Of India Ltd. v. Union Of India, and interim relief has been granted staying coercive measures. Prayed for the appeals to be kept pending and for interim relief. Revenue: Submitted that the issue is set at rest by the Delhi High Court's judgment in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors.
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Cause title — parties, addresses and appearances
O R D E R 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 16:16:28
The present appeals involve a common question relating to TDS on External Development Charges.
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 (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. Moreover, since the matter is pending before Hon’ble the Supreme Court, we cannot keep the present appeals pending for 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 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 16:16:28
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.
Needless to observe, that the right of the appellant to approach Hon’ble the Supreme Court in accordance with law shall remain reserved.
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 16:16:28
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