INCOME TAX OFFICER, TDS W-2, CHANDIGARH V. H.P. SINGH AND OTHERS, MOHALI

MA 112/CHANDI/2025

AI Insights

The case involves the Income Tax Officer (ITO), TDS W-2, Chandigarh as the appellant and H. P. Singh and others as the respondents. The core issue revolves around the applicability of TDS provisions on External Development Charges (EDC) paid by the assessee to the Punjab Urban Planning and Development Authority (PUDA). Initially, the Tribunal dismissed the revenue's appeal due to the low tax effect, but upon reviewing the circumstances and the specific provisions of the CBDT Circular No.5/2024, the Tribunal acknowledged the significance of the dispute concerning the nature of the transaction and its implications on TDS/TCS liabilities. The Tribunal's decision to recall the previous order and restore the appeal underscores the importance of the legal question regarding TDS applicability on payments made to PUDA.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833483 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-02-2026
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-06-2025
• Laws Referred To: CBDT Circular No.5/2024
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANDEEP YADAV LD
• Assessee Lawyers: VIVEK VARDHAN LD.
• Keywords: Tax effect; TDS

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M.A. No.112/CHANDI/2025 [In ITA No.301/CHANDI/2024] (िनधाŊरण वषŊ / Assessment Year: 2013-14) ITO, TDS W-2, Chandigarh बनाम/ Vs. H. P. Singh And Others 39, West Maloya, Village Bhelolpur Sector 122, Mohali ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAEFH-8681-G (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) Revenue by : Sh. Sandeep Yadav (Advocate) – Ld. AR Assessee by : Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 29-01-2026 घोषणाकीतारीख /Date of Pronouncement : 02-02-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this application u/s 254(2), the revenue seeks our indulgence in Tribunal order passed in captioned appeal on 16-12- 2024. The Tribunal has dismissed the appeal of the revenue on low tax effect. 2. The Ld. Sr. DR pointed out that the issue is covered under exception clause (I)(i) of para 3.1 of latest CBDT Circular No.5/2024 dated 15-03-2024 which provide that the appeal would still be Printed from counselvise.com 2 preferred where dispute relate to the determination of the nature of transaction such that the liability to deduct TDS / TCS thereon or otherwise is under question. The Ld. Sr. DR stated that the dispute in the appeal is related to applicability of TDS provisions on External Development Charges (EDC) as paid by the assessee to PUDA. The Ld. CIT(A) held that the payment to GMADA would not be liable to TDS u/s 194C. The Ld. AR could not controvert the said position. 3. Since the dispute is, indeed, covered by exception clause as rightly pointed out by Ld. Sr. DR, we recall Tribunal order dated 16-12- 2024 and restore the appeal back to its original status. The quantum appeal ITA No.301/Chandi/2024 shall come up for hearing before “A” Bench on 07-04-2026 as informed in open court. The registry is directed to fix the appeal accordingly. 4. The application stand allowed. Order pronounced on 02nd February, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 02-02-2026 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "