ANSAL PROPERTIES AND INFRASTRUCTURE LTD vs. DEPUTY COMMISSIONER OF INCOME TAX

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ITA/507/2026HC DelhiDLHC01110604202509 July 2026Bench: HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA,HON'BLE MR. JUSTICE DINESH MEHTA4 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court acknowledged that the issue was concluded so far as the High Court was concerned, referencing its own judgment in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors. However, the Court noted that the matter was pending before the Supreme Court. The High Court stated that it could not keep the present appeals pending indefinitely, as the Supreme Court's final decision might take time. Consequently, the Court disposed of all the appeals by observing that the fate of the judgment passed by the Supreme Court in M/s Florentine Estates Of India Ltd. would bind both parties. Until the Supreme Court decided the matter, recovery of the disputed demand against the appellant was stayed. The Court directed that if the Supreme Court decided in favour of the assessees, they could move an application to formally drop the demand. Conversely, if the Supreme Court decided against the assessees, the Department would be free to enforce the demand. All pending applications were also disposed of.

What were the facts?

The assessee, Ansal Properties and Infrastructure Ltd., filed a batch of appeals (ITA 505/2026, ITA 506/2026, ITA 507/2026, ITA 512/2026) before the Delhi High Court. These appeals challenged orders passed by the Deputy Commissioner of Income Tax. The core issue in all appeals pertains to Tax Deducted at Source (TDS) on External Development Charges. The appeals were filed with a significant delay in re-filing, which the High Court condoned. Applications for exemption from filing certain documents were also allowed. The appeals were listed for hearing on July 9, 2026.

What were the issues?

1. Whether the appeals filed by the assessee are maintainable given the delay in re-filing? (Procedural question turning on Section 151 of the Code of Civil Procedure, 1908). 2. Whether TDS is leviable on External Development Charges? (Question of law). Assessee's contentions: The assessee argued that against the Delhi High Court's judgment in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors, which had set at rest the issue of TDS on External Development Charges, a Special Leave Petition (SLP) was preferred before the Supreme Court. The assessee highlighted that the Supreme Court had granted interim relief, 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. Revenue's contentions: The Revenue, through its learned Senior Standing Counsel, submitted that the issue was concluded by the Delhi High Court's judgment in Puri Construction Private Limited v. Additional Commissioner Of Income Tax & Ors (2024) 462 ITR 326 (Delhi).

Which sections of the Income-tax Act were involved?

Section 151

AI-generated summary — verify with the full judgment below

$~43 to 45 and 52 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 505/2026 + ITA 506/2026 + ITA 507/2026 + ITA 512/2026 ANSAL PROPERTIES AND INFRASTRUCTURE LTD .....Appellant Through: Mr. Mayank Nagi, Mrs. Husnal Syali Nagi, Mr. Tarun Singh and Mr. Sandeep Yadav, Advs. versus DEPUTY COMMISSIONER OF INCOME TAX .....Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC and Mr. Pratyaksh Gupta, JSC. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA O R D E R % 09.07.2026 CM APPL. 42199/2026 (Delay of 198 days in re-filing) in ITA 505/2026 CM APPL. 42203/2026 (Delay of 198 days in re-filing) in ITA 506/2026 CM APPL. 42206/2026 (Delay of 198 days in re-filing) in ITA 507/2026 CM APPL. 42401/2026 (Delay of 198 days in re-filing) in ITA 512/2026 1. Instant applications have been filed under Section 151 of the Code of Civil Procedure, 1908 seeking condonation of delay in re-filing the appeals. 2. For the reasons stated in the applications, the re-filing delay of 198 days in each of the appeals is condoned. 3. The applications stand disposed of. 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 13/07/2026 at 15:37:02

CM APPL. 42200/2026 (exemption from list of dates & synopsis within 5 pages) in ITA 505/2026 CM APPL. 42204/2026 (exemption from list of dates & synopsis within 5 pages) in ITA 506/2026 CM APPL. 42207/2026 (exemption from list of dates & synopsis within 5 pages) in ITA 507/2026 CM APPL. 42402/2026 (exemption from list of dates & synopsis within 5 pages) in ITA 512/2026 4. These applications have been filed under Section 151 of the Code of Civil Procedure, 1908 seeking exemption from filing list of dates and synopsis within 5 pages. 5. For the reasons stated in the applications, the same are allowed. The list of dates running in 5 pages is taken on record. 6. The applications stand disposed of. CM APPL. 42201/2026 (EX FROM FILING LEGIBLE COPIES OF PAGE NOS.173,186 & 187) in ITA 505/2026 CM APPL. 42208/2026 (EX FROM FILING LEGIBLE PAGE NOS.59 & 75) in ITA 507/2026 CM APPL. 42403/2026 (EX FROM FILING LEGIBLE PAGE NOS.70 & 71) in ITA 512/2026 7. Instant applications have been filed under Section 151 of the Code of Civil Procedure, 1908 seeking exemption from filing legible page nos. 173,186-187, page nos. 59 and 75 and page nos. 70 and 71. 8. For the reasons stated, the same are allowed. 9. The applications stand disposed of. ITA 505/2026 & CM APPL. 42198/2026 (for Stay) ITA 506/2026 & CM APPL. 42202/2026 (for Stay) ITA 507/2026 & CM APPL. 42205/2026 (for Stay) ITA 512/2026 & CM APPL. 42400/2026 (for Stay) 10. The present batch of appeals involves a common question relating to TDS on External Development Charges. 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 13/07/2026 at 15:37:02

11.

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). 12. 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. 13. Heard learned counsel for the parties. 14. 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. 15. 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. 16. 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. 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 13/07/2026 at 15:37:02

17.

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. 18. Appeals stand disposed of alongwith all pending applications. DINESH MEHTA, J. RAJNEESH KUMAR GUPTA, J. JULY 9, 2026/sds 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 13/07/2026 at 15:37:02

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