CIT (TDS)-2 Vs Sikka Infrastructure Pvt Ltd (Delhi High Court)
The Delhi High Court considered the Department’s appeal under Section 260A of the Income Tax Act, 1961 against the Income Tax Appellate Tribunal, Delhi Bench, ‘G’, New Delhi order dated 28.03.2025 for AY 2012-13 in ITA No. 2495/Del/2022. The Tribunal had dismissed the Commissioner of Income Tax’s appeal against the order dated 25.07.2022 passed by the Commissioner of Income Tax (Appeals), relying upon the Delhi High Court’s judgment in Rajesh Projects (India) Pvt. Ltd. Vs CIT (TDS), decided on 16.02.2017 and reported in [2017] 392 ITR 483, as well as Mahagun (India) (P.) Ltd. vs. ACIT [2024] 209 ITD 236 (Delhi) (Trib.).
The Department argued that the earlier Rajesh Projects judgment arose from peculiar facts and could not determine the respondent’s case since it was not one of the petitioners. The respondent submitted that the earlier judgment had directed the Revenue to provide an opportunity of hearing to all similarly situated assessees and that GNOIDA had made the respondent believe that, being a Government authority, no tax was required to be deducted.
The High Court noted that Rajesh Projects had held that GNOIDA did not fall within the expression ‘Government’ and that one per cent tax was required to be deducted from annual lease rent. However, it had also held that where non-deduction occurred at the insistence of GNOIDA, no adverse action should be taken against the assessees. Since the respondent had not been heard pursuant to paragraph 21 of that judgment, the Court was not convinced that the respondent had failed to establish that GNOIDA had similarly insisted upon non-deduction. The Court held that an authority’s stand would naturally be similar qua similarly situated persons and declined to interfere with the Tribunal and authorities below. The appeal therefore failed.
Department’s Appeal Under Section 260A
The Department filed the present appeal under Section 260A of the Income Tax Act, 1961 against the order dated 28.03.2025 passed by the ITAT, Delhi Bench, ‘G’, New Delhi.
