Deepanshu Projects Pvt. Ltd. Vs ITO (ITAT Delhi)
Delhi ITAT Upholds TDS Demand on EDC Payments to HUDA: Section 194C Applicable
Delhi ITAT considered appeals against orders passed u/s 201(1)/201(1A), wherein Assessee was held to be an assessee-in-default for failure to deduct TDS on External Development Charges (EDC) paid to HUDA. CIT(A) Noida had upheld the TDS liability relying on the binding judgment of Hon’ble Delhi High Court in Puri Construction Pvt. Ltd. Vs Addl. CIT (W.P.(C) 9483/2019, order dated 13.02.2024), which held that payments of EDC constitute payments for work contracts attracting TDS u/s 194C.
Before Tribunal, Assessee argued that the matter is now pending before Hon’ble Supreme Court in SLP No. 11448/2024 & the Apex Court has directed that no coercive steps be taken against petitioners. However, Tribunal observed that no absolute stay operates against the Delhi High Court judgment, & therefore the legal position laid down therein remains binding & effective. Tribunal held that no contrary authority was shown & the issue is squarely covered against Assessee.
Accordingly, the grounds raised were rejected & both appeals were dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
These appeals are preferred by the assessee against the common order dated 09.06.2025 of the Commissioner of Income Tax, Appeal Addl/JCIT(A)-1 Noida (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/APL/S/250/2025-26/1076810052(1)/1076809787(1) arising out of the different order dated 31.03.2021 & 16.03.2022 passed u/s 201(1)201(1A) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, TDS Ward 74(1), Delhi (hereinafter referred to as the Ld. AO) for AYs: 2014-15 & 2016-17.
