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Facts
The assessee appealed against an order holding them as assessee in default for non-deduction of TDS on payment of EDC charges to HUDA. The Revenue contended that TDS was deductible at 2% under Section 194C of the Act.
Held
The Tribunal noted that the issue regarding the applicability of Section 194C was settled by the Delhi High Court in the case of Puri Construction Pvt. Ltd. The Tribunal found the grounds raised by the assessee to have no substance.
Key Issues
Whether TDS was deductible under Section 194C on EDC charges paid to HUDA, and if the assessee was rightly held in default for non-deduction.
Sections Cited
201(1), 201(1A), 194C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI NAVEEN CHANDRA
O R D E R PER ANUBHAV SHARMA, JM:
These appeals are preferred by the assessee against the common order dated 09.06.2025 of the Commissioner of Income Tax, Appeal Addl/JCIT(A)-1 Noida (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/APL/S/250/2025-26/1076810052(1)/1076809787(1) arising out of the different order dated 31.03.2021 & 16.03.2022 passed u/s 201(1)201(1A) of the Income & 4872/Del/2025 Deepanshu Projects Pvt. Ltd. (AY: 2014-15 & 2016-17)
Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, TDS Ward 74(1), Delhi (hereinafter referred to as the Ld. AO) for AYs: 2014-15 & 2016-17.
On hearing both the sides we find that the issue involved in both the appeals is holding the appellant as assessee in default for non deduction of TDS of payment of EDC charges to HUDA which as per the Revenue was liable to TDS @ 2% under Section 194C of the Act. The issue in this regard stands settled holding provision of Section 194C of the Act as applicable and relying the decision of Hon’ble Delhi High Court in the case of Puri Construction Pvt. Ltd. Vs. Addl.CIT, W.P. (C) 9483/2019 order dated 13.02.2024, issue is decided by ld CIT(A) against the assessee.
Though the matter is pending before the Hon’ble Supreme Court in SLP No. 11448/2024 and Hon’ble Supreme Court has directed that no coercive steps shall be taken against the petitioners before Hon’ble Supreme Court, however, as such there is no absolute stay on the operation of decision of Hon’ble Delhi High Court, so as to benefit the assessee. The grounds raised have no substance. The appeals are dismissed.
Order pronounced in the open court on 26.11.2025