Glorious Informatics Private Limited Vs ITO (ITAT Delhi)
EDC to HUDA attracts TDS u/s 194C: ITAT Delhi upholds 201(1)/201(1A) demand
Delhi Tribunal dismissed the assessee’s appeal and upheld the demand raised u/s 201(1) & 201(1A) for non-deduction of tax at source on payment of External Development Charges (EDC) made to Haryana Urban Development Authority (HUDA). The Tribunal held that the issue was squarely covered against the assessee by the decision of the Delhi High Court in Puri Construction (P.) Ltd. v. Addl. CIT (2024) 159 taxmann.com 444, wherein it was held that EDC payments are in the nature of contractual payments attracting TDS u/s 194C. Since the assessee had failed to deduct tax at source, it was rightly treated as an assessee in default. Finding no merit in the grounds raised, the Tribunal dismissed the appeal.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against the order dated 12.02.2025 of the Ld. Commissioner of Income Tax/Addl./JCIT(A)-2, Chandigarh (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/APL/S/250/2024-25/1073173838(1) arising out of the order dated 30.11.2022 passed u/s 201(1)/201(1A) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, TDS Ward-43(3), Delhi for AY: 2016-17.
