Case Law Details
Sirur Developers Pvt. Ltd. Vs JCIT (TDS) (ITAT Delhi)
ITAT find that the issue as to whether penalty under section 271C of the Act is leviable for non-deduction of tax on payments made for External Development Charges (EDC) to HUDA came up for hearing before the Tribunal in the case of TDI Infrastructure Ltd. Vs. Addl. CIT for the assessment year 2014-15 in ITA. No. 6653/Del/2019 and the Tribunal by order dated 06.07.2022 held that the assessee was not required to deduct tax at source at the time of payment of EDC as the same was not out of any statutory or contractual liability towards HUDA and, therefore, penalty under section 271C of the Act was not leviable.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals) New Delhi [hereinafter referred to CIT (Appeals)]/National Faceless Appeal Centre (NFAC) dated 10.08.2021 for the Assessment Year 2016-17 in sustaining the penalty levied under section 271C of the Income Tax Act, 1961 (the Act).
2. The assessee in its appeals raised the following common grounds of appeal:-
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