Santur Builders Private Limited Vs ITO (ITAT Delhi)
ITAT Delhi remanded the matter back to the file of AO (TDS) for proper verification of quantum of External Development Charges (EDC) for demand of tax under section 201(1) of the Income Tax Act.
Facts- The appellant/assessee, a real estate developer, was developing a housing project at Sohana, Gurugram. The Dy. Commissioner of Income Tax (TDS), Panchkula surveyed the office premises of Haryana Urban Development Authority (HUDA) and Sky-High Land Construction Ltd. u/s. 133A of the Act. It was noted by the DCIT (TDS), Panchkula that the payment of External Development Charges (EDC) made to the HUDA was liable to Tax De-duction at Source in the hands of various payers/persons including the appellant/assessee. The outcome of the said survey was circulated, vide a report dated 15.03.2017, amongst vari-ous AO of the TDS charges for taking necessary action in the cases of persons who paid EDC charges to the HUDA. As per AO, the appellant/assessee has paid EDC charges of Rs. 3,57,12,500/-.
AO (TDS) raised the demand of tax and interest thereon u/s. 201(1) and 201(1A) of the Act. Ag-grieved, the appellant/assessee filed appeal before the Ld. CIT(A), however, it did not succeed.
