Mahagun (India) Pvt. Ltd. Vs ACIT (ITAT Delhi)
The ITAT Delhi considered the assessee’s challenge to the orders of the Commissioner of Income Tax (Appeals)-28, New Delhi dated 29.06.2022, arising from orders passed by the Assessing Officer under Sections 201(1) and 201(1A) of the Income Tax Act, 1961 for Assessment Year 2012-13. In ITA No.1899/Del/2022, the Assessing Officer, by order dated 29.03.2019, had treated the assessee as an “assessee in default” for non-deduction of TDS on lease rent paid to NOIDA Authorities and raised a demand of Rs.62,76,444/-.
The assessee submitted that the impugned proceedings represented a second round of proceedings under Sections 201(1) and 201(1A), following an earlier order dated 22.03.2013. It was contended that the assessee had not deducted TDS on lease rent paid to NOIDA Authorities based on a bona fide belief supported by specific communications issued by the NOIDA Authority in English and Hindi stating that the lease rent did not fall within the meaning of “rent” under Section 194-I. The assessee also relied upon the Delhi High Court judgment in Rajesh Projects (India) Pvt. Ltd. vs. CIT (TDS)-II & Ors., reported in (2017) 78 taxmann.com 263 (Del), which dealt with the applicability of TDS provisions to lease rent paid to NOIDA Authority.
