ITO, WARD 77(1), NEW DELHI vs. SANTUR BUILDERS P.LTD, NEW DELHI

ITA 1973/DEL/2023Status: DisposedITAT Delhi07 December 2023AY 2016-17Bench: SHRI SAKTIJIT DEY (Vice President), SHRI M. BALAGANESH (Accountant Member)6 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that payments of EDC to HUDA are effectively payments to the State Government, and therefore, TDS provisions are not applicable. Previous decisions of the Coordinate Bench on identical issues were followed.

What were the facts?

The assessee, a real estate developer, paid External Development Charges (EDC) to HUDA without deducting TDS. The Assessing Officer treated the assessee as being in default and raised demands under sections 201(1) and 201(1A). The CIT(A) deleted the demand, relying on previous ITAT decisions.

What were the issues?

Whether TDS is deductible on payments of External Development Charges (EDC) made to HUDA. Whether the assessee was in default for not deducting TDS on such payments.

Which sections of the Income-tax Act were involved?

Section 201,Section 201(1A),Section 194C,Section 271C,Section 196

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI SAKTIJIT DEY, VICE- & SHRI M. BALAGANESH

Hearing: 29.11.2023Pronounced: 07.12.2023

PER SAKTIJIT DEY, VICE-PRESIDENT

Captioned appeal by the Revenue arises out of order dated

10.05.

2023 of learned Commissioner of Income Tax (Appeals) -23,

New Delhi, for the assessment year 2016-17. 2. Grounds raised by the Revenue are as under:

1.

Whether on the facts and in the circumstances of the case and in law, the CIT(A) was justified in not appreciating the fact that decision of Hon'ble ITAT in the judgments relied upon that the assessee was not liable to deduct tax at source on External Development Charges (EDC) is in contravention to CBDT's Office AY: 2016-17

Memorandum vide F. No. 370133/37/2017-TPL dated 23.12.2017, wherein it has been clearly mentioned that the TDS provisions would be applicable on EDC

The order continues below.

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