INCOME TAX OFFICER, LAXMI NAGAR, NEW DELHI vs. ASTHETIC TOWNSHIP DEVELOPERS PRIVATE LIMITED, DELHI

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ITA 2492/DEL/2025Status: DisposedITAT Delhi29 December 2025AY 2014-15Bench: SHRI S RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)3 pages

In favour of the Revenue: the Revenue's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the Ld. CIT(A) ignored the decision of the Hon'ble Delhi High Court in the case of M/s Puri Construction Private Limited, which held that EDC payments to HUDA are subject to TDS under Section 194C. Therefore, the ground raised by the revenue was sustained.

What were the facts?

The assessee filed an appeal against an order concerning tax liability for non-deduction of TDS under Section 201(1) and interest under Section 201(1A) on payments made to Haryana Urban Development Authority (HUDA) for External Development Charges (EDC). The issue was whether Section 194C was applicable.

What were the issues?

Applicability of TDS under Section 194C on External Development Charges (EDC) paid to HUDA. Whether the Ld. CIT(A) erred by ignoring a High Court ruling on the matter.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “B” BENCH, DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

Hearing: 12.11.2025Pronounced: 29.12.2025

O R D E R PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 27.02.2025 of the Ld. Commissioner of Income Tax, Appeal, Addl./JCIT(A)-

P a g e | Asthetic Township Developers Pvt. Ltd. (AY: 2014-15) 9, Mumbai (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/APUS/250/2024-25/1073781605(1) arising out of the order dated 27.03.2023 u/s 201(1)/201(1A) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the ITO, TDS Ward 73(2), Delhi for AY: 2014-15.

2.

None appeared for the assessee at the time of hearing though notices have been issued, no more opportunities justified. The Ld. DR was heard the issue involved is tax liability in non deduction of TDS u/s 201(1) and interest on the same u/s 201(1A) of the Act on account of payment made to Haryana Urban Development Authority (in short ‘HUDA’) for External Development Charges (in short ‘EDC’) which is income for HUDA and provision of Section 194C are applicable or not. On appreciating the impugned order we find that ld. CIT(A) has taken into consideration decision of the Tribunal in the case of M/s Shiv Sai Infrastructure Pvt. Ltd. Vs. ACIT, in ignoring the decision of Hon’ble Delhi High Court in the case of M/s Puri Construction Private Limited Vs. Addl. CIT & Ors. 159 taxmann.com 444 (Delhi) wherein Hon’ble High Court has held that EDC payment by development to HUDA would be subject to TDS u/s 194C of the P a g e | Asthetic Township Developers Pvt. Ltd. (AY: 2014-15) Act. Thus, the ground raised by revenue is sustained. The impugned order of the ld. First Appellate Authority is quashed. The appeal stand allowed.

Ordered accordingly.

Order pronounced in the open court on 29.12.2025

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