Case Law Details
DLF Homes Panchkula Pvt Ltd Vs ACIT (Delhi High Court)
Delhi High Court has quashed penal action against DLF Homes Panchkula Pvt Ltd related to the failure to deduct Tax Deducted at Source (TDS) on External Development Charges (EDC) paid to the Haryana Urban Development Authority (HUDA). The judgment provides relief to DLF and marks an important precedent in the matter of TDS deductions.
This ruling refers to the financial year 2013-14 and challenges the order dated 28th November 2022, passed under Section 271C of the Income Tax Act, 1961. The bone of contention was whether DLF could be considered an assessee-in-default under Section 201/201(1A) of the Act for not deducting withholding tax related to EDC paid to HUDA.
Highlighting a previous judgment by a coordinate bench of the court in favor of DLF, the court decided that the same principle should apply to the penalty order and demand notice contested in this petition. Consequently, the penalty order and demand notice against DLF Homes Panchkula Pvt Ltd have been quashed.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
