M3M INDIA PVT.LTD.,GURGAON vs. JCIT OSD TDS CIRCLE, GURGAON

ITA 5434/DEL/2024Status: DisposedITAT Delhi11 March 2026AY 2021-22Bench: SHRI S RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA, JUDICIAL MEMBER (Assessment Years: 2017-18 to 2021-22) M/s M3M India Pvt. Ltd. Vs. JCIT, (OSD)TDS Circle Unit Sb/C/5L/Office 008, M3M Urbana, Sector-67, Golf Course South City II, S.O. Gurugram, Haryana - 122101 स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AACCT7082Q Appellant Appellant by : Respondent by : Date of Hearing Date of Pronouncement Gurgaon Haryana .. Respondent Sh. S.S. Nager, CA, Sh. Gaurav Sachdeva, CA Ms. Amish S. Gupt, C19 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

For AY 2017-18, the Tribunal allowed the appeal, following a Delhi High Court decision that Section 194I was not applicable to EDC payments. For subsequent AYs, the Tribunal remanded the matters to the AO to verify if the conditions of the first proviso to Section 201(1) were met.

What were the facts?

The assessee company, engaged in real estate development, deposited External Development Charges (EDC) without deducting TDS. The Assessing Officer (AO) initiated proceedings under Section 201(1)/201(1A) for non-deduction of TDS on EDC payments, invoking Sections 194I and 194C.

What were the issues?

Whether TDS was required to be deducted on External Development Charges (EDC) payments, and if not, whether the assessee could be held in default under Section 201(1)/201(1A) if the payee had complied with return filing and tax payment obligations.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 194I,Section 194C

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Income Tax Appellate Tribunal, “E” BENCH, DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

For Respondent: Ms. Amish S. Gupt, CIT,DR
Hearing: 15.01.2026Pronounced: 11.03.2026

PER ANUBHAV SHARMA, JM:

These are appeals preferred by the Assessee against the orders of the Ld. Commissioner of Income-tax (Appeals) (hereinafter referred to as the P a g e | 2 5 Appeals ITA No.5431 to 5434 & 5660/Del/2024 M/s M3M India Pvt. Ltd. (AY: 2017-18 to 2021-22)

First Appellate Authority or ‘the ld. FAA’ for short) in appeals filed before

him against the orders of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for

The order continues below.

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