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

ITA 217/DEL/2023Status: DisposedITAT Delhi18 July 2023AY 2015-164 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the imposition of demand under Section 201 and consequential interest under Section 201(1A) was not justified. Following a co-ordinate bench's decision and a Supreme Court ruling, the Tribunal found that the assessee had not violated Chapter XVIIB of the Act by not deducting TDS on EDC payments to DGTCP Haryana through HUDA.

What were the facts?

The Revenue appealed against the CIT(A)'s order concerning the assessee being treated as 'assessee in default' for failing to deduct TDS on External Development Charges (EDC) paid to the Directorate of Town and Country Planning, Haryana (DGTCP) through HUDA. The assessee contended that these payments were effectively to the State Government, exempting them from TDS.

What were the issues?

Whether TDS is required to be deducted on payments made as External Development Charges (EDC) to a State Government authority like HUDA/DGTCP Haryana. Whether the assessee can be treated as an assessee in default for non-deduction of 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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Income Tax Appellate Tribunal, DELHI BENCH “G” DELHI

Before: SHRI KUL BHARAT & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Sarthak Jain, Adv
For Respondent: Shri Anuj Garg, Sr.DR

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-XXIII, New Delhi (‘CIT(A)’ in short) dated 06.10.2022 arising from the order dated 23.02.2022 passed by the Assessing Officer (AO) under Section 201/201(1A) of the Act, 1961 (the Act) concerning AY 2015-16. 2. As per its grounds of appeal, the assessee has challenged the action of the Assessing Officer for treating the assessee as ‘assessee in default’ towards failure to deduct tax as required under the provisions of Chapter XVIIB of the Act towards amount paid as External Development Charges (EDC) to Directorate of Town and Country Planning, Haryana (Haryana Governmen

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