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2022 (5) TMI 1344 - AT - Income TaxLevied penalty u/s 271C - short deduction/non deduction of tax at source alleging default committed by the assessee u/s 194C on payment of External Development Charges (EDC) to Haryana Urban Development Authority (HUDA) - assessee contends that the payment to HUDA is in effect payment to State Government and therefore such payment is exempt from obligations to deduct TDS in view of Section 196 - HELD THAT - As identical issue has been examined by the Co-ordinate Bench in the case of Perfect Constech Pvt. Ltd. vs. Additional Commissioner of Income Tax 2020 (12) TMI 1158 - ITAT DELHI wherein found that the provisions of Section 194C are not applicable on payments to agencies like HUDA on behalf of the State Government. The imposition of penalty under Section 271C was consequently found to be unsustainable in the absence of default of Section 194C. The facts and issue being identical in the light of the clarification noted above coupled with view taken by the Coordinate Bench in the identical facts situation we see no reason to depart therefrom. Consequently we find merit in the plea raised on behalf of the assessee for cancellation of penalty imposed under Section 271C of the Act. - Assessee appeal allowed.
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