TDS on HUDA EDC Payments Upheld Due to Section 194C Applicability

ITO Vs Asthetic Township Developers Pvt. Ltd. (ITAT Delhi) EDC Payments to HUDA Attract TDS u/s 194C: ITAT Delhi Reverses CIT(A), Allows Revenue Appeal The Delhi ITAT “B” Bench, in ITO v. Asthetic Township Developers Pvt. Ltd. (ITA No. 2492/Del/2025, AY 2014-15; order dated 29.12.2025), has allowed the Revenue’s appeal and held that payments made towards External Development Charges (EDC) to Haryana Urban Development Authority (HUDA) are liable for TDS u/s 194C, thereby restoring the demand raised u/s 201(1) and interest u/s 201(1A). The Assessing Officer (TDS) had treated the Assessee a...