Case Law Details
ITO Vs Silverglades Infrastructure Pvt. Ltd. (ITAT Delhi)
ITAT Delhi held that the assessee has not committed any violation of provision of Chapter XVII B of the Act by making payment towards External Development Charges (EDC) to Directorate of Town and Country Planning, Haryana (Haryana Government) (DGTCP) through banking channel favoring Haryana Urban Development Authority (HUDA).
Facts- The assessee has challenged the action of AO for treating the assessee as ‘assessee in default’ towards failure to deduct tax as required under the provisions of Chapter XVIIB of the Act towards amount paid as External Development Charges (EDC) to Directorate of Town and Country Planning, Haryana (Haryana Government) (DGTCP) through banking channel favoring Haryana Urban Development Authority (HUDA).
Conclusion- Held that the assessee has not committed any violation of provision of Chapter XVII B of the Act by making payment towards EDC charges to DGTCP Haryana through HUDA without deduction of TDS.
It is further noticed that Hon’ble Supreme Court in the case of Union of India vs. Additional Commissioner of Income Tax (TDS), Kanpur in the context of Agra Development Authority observed that such authority was statutory body constituted under UP Urban Planning and Development Act, 1973 and covered by notification issued. After considering the terms of notification, it was held that TDS provisions for payments made to such Authority are not applicable.
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