ANSAL PROPERTIES & INFRASTRUCTURE LIMITED,NEW DELHI V. DCIT, CIRCLE-73(1) , NEW DELHI

ITA 5648/DEL/2024

AI Insights

The case involves Ansal Properties & Infrastructure Ltd, which appealed against the orders concerning the assessment years 2015-16 to 2017-18 and 2019-20. The core issue was the non-deduction of tax at source on EDC payments made to the Haryana Urban Development Authority (HUDA). The Income Tax Department initiated proceedings under sections 201(1) and 201(1A) following a survey that revealed EDC payments were made without tax deduction. The Tribunal referenced a decision by the Delhi High Court in the case of Puri Construction, which held that section 194C of the Act applies to EDC payments, making them liable for tax deduction at source. The Tribunal upheld the lower authority's decision, dismissing the appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713376 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2019-2020
• Other Referred Cases: Puri Construction vs. Delhi HC
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Keywords: TDS; Non-deduction of tax
• Section: 143(3); 201(1); 133A; 194C

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA Nos. 5645 to 5648/Del/2024 (Assessment Years: 2015-16 to 2017-18 and 2019-20) Ansal Properties & Infrastructure Ltd, 115, Ansal Bhawan, K.G. Marg, New Delhi-110001 Vs. DCIT, Circle-73(1), New Delhi (Appellant) (Respondent) PAN: DELAI2057D Assessee by : None Revenue by: Shri Ajay Kumar Arora, Sr. DR Date of Hearing 29/07/2025 Date of pronouncement 30/07/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeals in ITA No. 5645 to 5648/Del/2024 for AYs 2015-16 to 2017-18 and 2019-20, arise out of the order of the ld. Commissioner of Income Tax (Appeals)-24, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 21.11.2024 for AY 2015-16, 2017-18, 19.11.2024 for AYs 2016-17 and 2019-20 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 31.05.2024, 29.03.2023, 29.03.2024, 06.06.2023 by the Assessing Officer, DCIT, Circle-73(1), New Delhi (hereinafter referred to as ‘ld. AO’). Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience. Printed from counselvise.com ITA Nos. 5645 to 5648/Del/2024 Ansal Properties & Infrastructure Ltd Page | 2 2. Though the assessee has raised several grounds before us, the only identical issue to be decided in all these appeals is as to whether the assessee could be treated as assessee in default under section 201(1) of the Act and consequential levy of interest under section 201(1A) of the Act in respect of non-deduction of tax at source in terms of section 194C of the Act for External Development Charges (EDC) paid to HUDA in the facts and circumstances of the instant case. 3. None appeared on behalf of the assessee. Since the issue is covered by the decision of Hon’ble Delhi High Court, these appeals were heard on hearing the Learned DR and based on materials available on record. It is not in dispute that the assessee had made payment of EDC charges to HUDA without deducting tax at source. Pursuant to the survey/ inspection carried out at the office of Haryana Urban Development Authority (HUDA) under section 133A of the Act by the TDS wing of the Income Tax Department, Panchkula on 4-12-2018, it was noticed that EDC received by HUDA from private developers / colonizers without deduction of tax at source. Accordingly, proceedings under section 201(1)/201(1A) were initiated in the case of the assessee by issuing notice on 5-7-2022 on the ground that HUDA is a taxable entity and EDC paid by assessee to HUDA has character of income in the hands of HUDA, thereby liable for deduction of tax at source. We find that this issue was subject matter of consideration by the Hon’ble Jurisdictional High Court in the case of Puri construction reported in 159 taxmann.com 444 (Del HC) vide order dated 13-2-2024 wherein it was held that provisions of section 194C of the Act would get attracted in respect of EDC paid by real estate developers to HUDA. We find that the learned CITA had followed the decision of Hon’ble Jurisdictional High Court and held that EDC paid by the assessee without deduction of tax at source to HUDA makes the assessee as ‘assessee in Printed from counselvise.com ITA Nos. 5645 to 5648/Del/2024 Ansal Properties & Infrastructure Ltd Page | 3 default’ in terms of section 201(1) of the Act and consequentially liable for levy of interest under section 201(1A) of the Act. We do not find any infirmity in the said order of the learned CITA. Accordingly, the grounds raised by the assessee are hereby dismissed. 4. In the result, all the appeals of the assessee are dismissed. Order pronounced in the open court on 30/07/2025. -Sd/- -Sd/- (SUDHIR KUMAR) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30/07/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "