INCOME TAX OFFICER, LAXMI NAGAR, NEW DELHI V. ASTHETIC TOWNSHIP DEVELOPERS PRIVATE LIMITED, DELHI

ITA 2492/DEL/2025

AI Insights

The case involves Asthetic Township Developers Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax Appeals, Mumbai, concerning the non-deduction of TDS on payments made to HUDA for EDC. The primary legal issue was whether such payments are subject to TDS under Section 194C of the Income Tax Act, 1961. The Tribunal referenced decisions from both the Delhi High Court and previous Tribunal cases to conclude that EDC payments to HUDA are indeed subject to TDS.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824569 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 17-04-2025
• Other Referred Cases: M/s Shiv Sai Infrastructure Pvt. Ltd. Vs. ACIT, M/s Puri Construction Private Limited Vs. Addl. CIT & Ors.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH KUMAR DHANESTA
• Keywords: TDS
• Section: 201(1); 194C

Judgement Text

"P a g e | 1 ITA No.2492/Del/2025 Asthetic Township Developers Pvt. Ltd. (AY: 2014-15) IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, DELHI BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER & SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2492/Del/2025 (Assessment Year: 2014-15) Income Tax Officer Ward 73(2), Room No. 401, 4th Floor, Aayakar Bhawan, Laxmi Nagar, Delhi – 110092 Vs. Asthetic Township Developers Private Ltd. 263, DDA Office, Complex, Jhandewalan Extn. New Dehli – 110055 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAFCA7128K Appellant .. Respondent Appellant by : None Respondent by : Sh. Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 12.11.2025 Date of Pronouncement 29.12.2025 O R D E R PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 27.02.2025 of the Ld. Commissioner of Income Tax, Appeal, Addl./JCIT(A)- Printed from counselvise.com P a g e | 2 ITA No.2492/Del/2025 Asthetic Township Developers Pvt. Ltd. (AY: 2014-15) 9, Mumbai (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/APUS/250/2024-25/1073781605(1) arising out of the order dated 27.03.2023 u/s 201(1)/201(1A) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the ITO, TDS Ward 73(2), Delhi for AY: 2014-15. 2. None appeared for the assessee at the time of hearing though notices have been issued, no more opportunities justified. The Ld. DR was heard the issue involved is tax liability in non deduction of TDS u/s 201(1) and interest on the same u/s 201(1A) of the Act on account of payment made to Haryana Urban Development Authority (in short ‘HUDA’) for External Development Charges (in short ‘EDC’) which is income for HUDA and provision of Section 194C are applicable or not. On appreciating the impugned order we find that ld. CIT(A) has taken into consideration decision of the Tribunal in the case of M/s Shiv Sai Infrastructure Pvt. Ltd. Vs. ACIT, in ITA No. 5713/Del/2019 ignoring the decision of Hon’ble Delhi High Court in the case of M/s Puri Construction Private Limited Vs. Addl. CIT & Ors. 159 taxmann.com 444 (Delhi) wherein Hon’ble High Court has held that EDC payment by development to HUDA would be subject to TDS u/s 194C of the Printed from counselvise.com P a g e | 3 ITA No.2492/Del/2025 Asthetic Township Developers Pvt. Ltd. (AY: 2014-15) Act. Thus, the ground raised by revenue is sustained. The impugned order of the ld. First Appellate Authority is quashed. The appeal stand allowed. Ordered accordingly. Order pronounced in the open court on 29.12.2025 Sd/- (S Rifaur Rahman) Sd/- (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 29.12.2025 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "