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Facts
The assessee is in appeal against the order of the CIT(A) upholding the demand raised by the AO for non-deduction of TDS on External Development Charges (EDC) paid to the Department of Town & Country Planning. The AO invoked Section 194C of the Act.
Held
The Tribunal, referring to a decision of the Delhi High Court in the case of Puri Construction (P.) Ltd. vs. Addl.CIT, held that EDC payments are liable to TDS under Section 194C of the Act. No interference was found with the lower authorities' decision.
Key Issues
Whether payments made for External Development Charges (EDC) are liable for TDS under Section 194C of the Income Tax Act.
Sections Cited
201(1), 201(1A), 194C
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Income Tax Appellate Tribunal, DELHI BENCHES : C : NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI KRINWANT SAHAY
ORDER
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 13.03.2025 of the Ld. Commissioner of Income-tax (Appeals)-2, Chandigarh, (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in appeal No.NFAC/2013-14/10069814, filed before him against the order dated 14.01.2022 passed u/s 201(1)/201(1A) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Income Tax Officer, Ward-76(3), New Delhi (hereinafter referred to as the Ld. AO, for short).
None appeared for the assessee at the time of hearing and the record shows that notices have been issued repeatedly. No further opportunity is justified.
The ld. DR was heard and the record was perused. The issue arises out of the demand raised on account of non-deduction of TDS on External Development Charges (EDC) paid to the Department of Town & Country Planning (DTCP) and the ld. AO has invoked the provisions of section 194C of the Act to allege that the EDC payments were covered u/s 194C of the Act and, therefore, liable to TDS. As with regard to the same, the ld.CIT(A) has relied the decision of the Hon’ble Delhi High Court in the case of Puri Construction (P.) Ltd. vs. Addl.CIT (2024) 159 taxmann.com 444, which holds EDC payments liable to TDS u/s 194C of the Act. We find no reason to interfere. The appeal of the assessee is dismissed. Order pronounced in the open court on 28.11.2025.