Local Authority Status of DDA Defeats TDS on Ground Rent

DCIT Vs Splendor Landbase Limited (ITAT Delhi) Ground Rent to DDA Needs No TDS: ITAT Rejects 194I Demand- DDA Is Local Authority: Section 196 Shields Assessee In DCIT Vs. Splendor Landbase Ltd., ITA Nos.2408 & 2410/Del/2025, AYs 2017-18 & 2018-19, order dated 31.12.2025, Delhi ITAT dismissed Revenue’s appeals & upheld deletion of TDS demand u/s 201(1) & interest u/s 201(1A) on ground rent paid to Delhi Development Authority (DDA). Assessee had paid ground rent of ₹5.73 crore to DDA without deducting TDS u/s 194I. AO treated Assessee as assessee in default, raising demand of...