Section 196 of the Income Tax Act

The decision most relied on for Section 196 is M/s Puri Construction Private Limited v. Addl. CIT & Ors. (159 Taxmann.com 444), cited in 42 of the 64 judgments on BharatTax that turn on this section.

Leading authorities on Section 196

M/s Puri Construction Private Limited v. Addl. CIT & Ors.
159 Taxmann.com 444 · 2024 · High Court
42
citing judgments

External Development Charges (EDC) paid by a developer to a government body like Haryana Shahari Vikas Pradhikaran (HSVP) for a development project are contractual payments, making them liable for tax deduction at source under Section 194C of the Income-tax Act, 1961.

JIT (OSD) v. DLF Home Panchkula (P) Ltd.
161 Taxmann.com 237 · 2024 · Supreme Court
8
citing judgments
DLF Homes Panchkula Pvt. Ltd. v. Joint CIT
459 ITR 773 · 2023 · High Court
8
citing judgments
M/s DLF Homes Panchkula Pvt. Ltd. v. JCIT(OSD)
149 Taxmann.com 176 · 2023 · High Court
3
citing judgments
Suchitra Components Ltd. v. CCE
208 ELT 321 · 2007 · Supreme Court
3
citing judgments

Judgments on Section 196

Dlf Homes Panchkula Private Limited (TAN Deld10110C), New Delhi vs. DCIT, TDS Circle 74(1), New Delhi

In the result, the appeal filed by the assessee is allowed as indicated above

ITA 396/DEL/2026[2017-18]Status: DisposedITAT Delhi03 Sept 2026AY 2017-18

Bench: Shri S.Rifaur Rahman & Shri Raj Kumar Chauhandlf Homes Panchkula Private Limited, Vs. Dcit, Tds Circle 72 (1), 1-E, Naaz Cinema Complex, Delhi. Jhandewalan Extension, New Delhi - 110 055. (Pan : Aabch8735M) (Appellant) (Respondent) Assessee By : Shri R.S. Singhvi, Ca Shri Satyajeet Goyal, Ca Revenue By : Shri Sudeep Dabas, Cit Dr Date Of Hearing : 06.07.2026 Date Of Order : 03.09.2026 Order Per S.Rifaur Rahman,Am: The Assessee Has Filed Appeal Against The Order Of The Learned Addl./Jcit 1. (Appeals), Ranchi [“Ld. Cit(A)”, For Short]Dated 25.11.2025 For The Assessment Year 2017-18 Raising Following Grounds Of Appeal :- “1. That On The Facts & Circumstances Of The Case, The Order Passed By Ld. Cit(A) U/S 250 Is Bad In Law & On Facts & Has Been Framed Without Proper Appreciation Of The Statutory Provisions & Submissions Made By The Appellant. 2.1 That On The Facts & Circumstances Of The Case, The Ld. Cit(A) Has Erred In Upholding The Order Passed U/S 201/201(1A) Holding The Assessee As Assessee In Default' For Non-Deduction Of Tds On External Development Charges (Edc) Amounting To Rs.3,972,66,000/- Paid To Director, Town & Country Planning, Haryana

For Appellant: Shri R.S. Singhvi, CAFor Respondent: Shri Sudeep Dabas, CIT DR
Section 10(20)Section 194CSection 196Section 201Section 201(1)Section 250

Krrish Shalimar Projects Private Limited, South East Delhi vs. DCIT, Circle 30, Delhi, New Delhi

In the result, impugned order is upheld and appeal of the assessee is dismissed

ITA 4310/DEL/2026[2015-16]Status: DisposedITAT Delhi31 Aug 2026AY 2015-16

Bench: Shri Vikas Awasthy & Shri Amitabh Shukla

For Appellant: AAECK2346Q
Section 194Section 194CSection 196Section 201(1)

Royalgolf Link City Projects Private Limited, Delhi vs. Central Circle 14, Delhi

In the result, appeal of the assessee in ITA No

ITA 1670/DEL/2026[2017-18]Status: DisposedITAT Delhi03 Aug 2026AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. Naveen Chandraroyalgolf Link City Projects Vs. Central Circle - 14 Pvt. Ltd., Income Tax Office, M-4, Ground First Level Delhi – 110 049 Office No.126 Campus – 2, South Extension Part-Ii, Andrewsganj, S.O. Shahpur Jat, South East Delhi – 110 049 Pan No. Aahcr 0549 M (Appellant) (Respondent) Assessee By Shri Shubham Bansal, Adv. Revenue By Shri Balkishan Gopal, Sr. D.R. Date Of Hearing: 03.08.2026 Date Of Pronouncement: 03.08.2026

Section 10(20)Section 143(3)Section 194ISection 196Section 270ASection 271ASection 40a

Base Exports Private Limited, New Delhi vs. ITO Ward 73(3), Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 5290/DEL/2025[2016-17]Status: DisposedITAT Delhi13 Mar 2026AY 2016-17

Bench: Shri Raj Kumar Chauhan, Hon’Ble & Mrs. Renu Jauhri, Hon’Ble

For Appellant: NoneFor Respondent: Shri Amit Jain, CIT (DR)
Section 194Section 194CSection 196Section 250Section 250HSection 3(3)(a)

ACIT, New Delhi vs. Arjun Enterprises Private Limited, Mumbai

In the result, ground No.5 & 6 raised by the revenue are dismissed

ITA 4257/DEL/2025[2018-19]Status: DisposedITAT Delhi06 Feb 2026AY 2018-19

Bench: Satbeer Singh Godara & Shri S. Rifaur Rahmanacit , Vs. Arjun Enterprises Pvt. Ltd. New Delhi 711, Filix Commercial Complex, Opp Asian Paints L.Bs Marg Bhandup W Mumbai 400078 Maharashtra (Pan: Aahca 1448 A)

For Appellant: NoneFor Respondent: Sh. Jitender Singh, CIT DR
Section 133(6)Section 143(2)Section 40Section 68

DCIT, Circle-77(1), Delhi vs. Splendor Landbase Limited, Delhi

In the result, both the appeals of revenue are dismissed

ITA 2410/DEL/2025[2018-19]Status: DisposedITAT Delhi31 Dec 2025AY 2018-19

Bench: Shri C.N. Prasad & Shri M. Balanganesh

Section 194Section 194ISection 196Section 201Section 201(1)

DCIT, Circle 77(1), Delhi vs. Splendor Landbase Limited, Delhi

In the result, both the appeals of revenue are dismissed

ITA 2408/DEL/2025[2017-18]Status: DisposedITAT Delhi31 Dec 2025AY 2017-18

Bench: Shri C.N. Prasad & Shri M. Balanganesh

Section 194Section 194ISection 196Section 201Section 201(1)

Deputy Gothwal Constructions Pvt Ltd, Delhi vs. DCIT, Circle-74(1), Delhi

In the result, this appeal is allowed for statistical purposes

ITA 2862/DEL/2025[2017-18]Status: DisposedITAT Delhi17 Dec 2025AY 2017-18

Bench: Shrimahavir Singh, Hon’Ble & Shrisanjay Awasthiआ.अ.सं/.I.T.A No.2862/Del/2025 िनधा"रणवष"/Assessment Year: 2017-18 बनाम Deputy Gothwal Constructions P. Ltd. Dcit, L-73, Mahipalpur Extension, Vs. Circle 74(1), South Delhi. New Delhi. Pan No.Aaccd9703C अपीलाथ" Appellant ""यथ"/Respondent

Section 194CSection 196Section 201Section 201(1)Section 250Section 271

Trehan Promoters & Builders Pvt Ltd, New Delhi vs. Income Tax Officer, Ward 76(4) TDS, New Delhi

In the result, appeal of the assessee in ITA No

ITA 2058/DEL/2025[2015-16]Status: DisposedITAT Delhi10 Nov 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

For Appellant: Shri Pushdeep Singh, AdvFor Respondent: Shri Manish Gupta, Sr. DR
Section 194CSection 201Section 201(1)

Sternal Buildcon Private Limited, New Delhi vs. Deputy Commissioner of Income Tax, Circle 24(2), Delhi, New Delhi

Appeal is allowed

ITA 99/DEL/2025[2017-18]Status: DisposedITAT Delhi10 Sept 2025AY 2017-18

Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

For Appellant: Smt. Ananya KapoorFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 143(3)Section 196Section 40

Mettur Municipality, Salem vs. ITO (TDS), Salem

In the result both the appeals of the assessee are allowed

ITA 759/CHNY/2025[2024-25]Status: DisposedITAT Chennai12 Aug 2025AY 2024-25

Bench: Shri Manu Kumar Giri & Shri S.R. Raghunathaआयकर अपील सं./Ita No.: 758 & 759/Chny/2025 धनिाारण वर्ा / Assessment Year: 2023-24, 2024-25 Mettur Municipality Income Tax Officer (Tds) Salem. Municipality Office Road, Mettur Dam, Vs. Salem – 636 401. Tamil Nadu [Pan: Aaalm2764R] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : Shri. S. Bhupendran, Advocate. प्रत्यथी की ओर से/Respondent By : Ms. Gouthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 04.06.2025 घोर्णा की तारीख/Date Of Pronouncement : 12.08.2025

For Appellant: Shri. S. Bhupendran, AdvocateFor Respondent: Ms. Gouthami Manivasagam, JCIT
Section 194ASection 194A(3)(iii)Section 201

Mettur Municipality, Salem vs. ITO (TDS), Salem

In the result both the appeals of the assessee are allowed

ITA 758/CHNY/2025[2023-24]Status: DisposedITAT Chennai12 Aug 2025AY 2023-24

Bench: Shri Manu Kumar Giri & Shri S.R. Raghunathaआयकर अपील सं./Ita No.: 758 & 759/Chny/2025 धनिाारण वर्ा / Assessment Year: 2023-24, 2024-25 Mettur Municipality Income Tax Officer (Tds) Salem. Municipality Office Road, Mettur Dam, Vs. Salem – 636 401. Tamil Nadu [Pan: Aaalm2764R] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : Shri. S. Bhupendran, Advocate. प्रत्यथी की ओर से/Respondent By : Ms. Gouthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 04.06.2025 घोर्णा की तारीख/Date Of Pronouncement : 12.08.2025

For Appellant: Shri. S. Bhupendran, AdvocateFor Respondent: Ms. Gouthami Manivasagam, JCIT
Section 194ASection 194A(3)(iii)Section 201

Sterling Infrastructure Private Limited, Delhi vs. ACIT, Central Circle-15, Delhi

ITA 3982/DEL/2024[2014-2015]Status: DisposedITAT Delhi30 Jul 2025AY 2014-2015

Bench: Shri Anubhav Sharma & Shri Manish Agarwalassessment Years: 2014-15 Sterling Infrastructure Private Vs Acit, Limited, Central Circle-15, 20A, Rajpur Road, Delhi. Civil Lines, Delhi – 110 054. Pan: Aakcs7108Q (Appellant) (Respondent) Assessee By : Shri Ranjan Chopra, Advocate & Shri Jaspal Singh Sethi, Advocate Revenue By : Shri Mahesh Kumar, Cit-Dr Date Of Hearing : 03.07.2025 Date Of Pronouncement : 30.07.2025 Order Per Anubhav Sharma, Jm:

For Appellant: Shri Ranjan Chopra, Advocate &For Respondent: Shri Mahesh Kumar, CIT-DR
Section 143(3)Section 147Section 148Section 194CSection 196

DCIT Central Circle-31, New Delhi vs. New India City Developers Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 1738/DEL/2023[2014-15]Status: DisposedITAT Delhi05 Mar 2024AY 2014-15

Bench: Shri Saktijit Dey & Shri M. Balaganeshdcit, Vs. New India City Developers Central Circle-31, Pvt. Ltd, New Delhi B-44/Ii, Floor Jangpura, New Delhi-110014 (Appellant) (Respondent) Pan:Aaack0016B

For Appellant: NoneFor Respondent: Ms. Indu Bala Saini, Sr. DR
Section 133ASection 143(1)Section 147Section 148Section 151Section 194CSection 196Section 271CSection 40

Shyam Communication Systems, New Delhi vs. JCIT, Range-77, New Delhi

In the result, all the three appeals of the assessee are allowed

ITA 2020/DEL/2023[2015-16]Status: DisposedITAT Delhi21 Feb 2024AY 2015-16

Bench: Shri Challa Nagendra Prasad:Assessment Year: 2015-16

Section 119Section 194CSection 196Section 271C

ACIT, Circle-77(1), Delhi vs. Shree Vardhman Developers Pvt. Ltd., Delhi

In the result, the appeal of the appellant is Allowed

ITA 2367/DEL/2023[2020-21]Status: HeardITAT Delhi21 Dec 2023AY 2020-21

Bench: the Hon’ble Tribunal was penalty order u/s 271C of the I.T. Act, 1961, while in this case subject matter of appeal is order u/s 201(1)/201(1A) of the I.T. Act passed by AO.

For Appellant: Ms. Gunjan Jain, AdvocateFor Respondent: Shri Anuj Garg, Sr. DR
Section 194ASection 194CSection 201Section 201(1)Section 271C

ACIT, Circle-77(1), Delhi vs. Shree Vardhman Developers Pvt. Ltd., Delhi

In the result, the appeal of the appellant is Allowed

ITA 2366/DEL/2023[2019-20]Status: HeardITAT Delhi21 Dec 2023AY 2019-20

Bench: the Hon’ble Tribunal was penalty order u/s 271C of the I.T. Act, 1961, while in this case subject matter of appeal is order u/s 201(1)/201(1A) of the I.T. Act passed by AO.

For Appellant: Ms. Gunjan Jain, AdvocateFor Respondent: Shri Anuj Garg, Sr. DR
Section 194ASection 194CSection 201Section 201(1)Section 271C

ITO, Ward 77(1), New Delhi vs. Santur Builders P.Ltd, New Delhi

In the result, the appeal is dismissed

ITA 1973/DEL/2023[2016-17]Status: DisposedITAT Delhi07 Dec 2023AY 2016-17

Bench: Shri Saktijit Dey, Vice- & Shri M. Balaganeshassessment Year: 2016-17

Section 194CSection 201Section 201(1)Section 271C

Principal Commissioner of Income Tax 1 Kolkata vs. M/S Y R Traders Pvt Ltd

ITAT/198/2023HC Calcutta17 Nov 2023

Bench: THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 197Section 197(17)Section 264

ITO, Ward-77(2), New Delhi vs. Shree Vardhman Township Private Ltd., New Delhi

In the result, the appeal of appellant is hereby allowed

ITA 2804/DEL/2022[2015-16]Status: DisposedITAT Delhi30 Oct 2023AY 2015-16

Bench: Us:- 1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Cit(A) Was Justified In Not Appreciating The Fact That The Definition Of Contract Provided U/S 194C Is Wide Enough To Cover Edc Payments. Edc Payments Are In Nature Of Contract U/S. 194C & Therefore Are Required To Be Subjected To Tds Accordingly.

Section 194ASection 194CSection 201Section 201(1)Section 271C