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2022 (7) TMI 173 - AT - Income TaxLevy of penalty u/s 271C - reasonable cause within the meaning of section 273B for non deduction of TDS on EDC charges towards Town and Country Planning, Government of Haryana - As submitted by assessee the payments made to HUDA were only for the purpose of facilitating the payments due on account of EDC charges towards Town and Country Planning, Government of Haryana and when the payments are made to the Government or local authority, no tax is required to be deducted - HELD THAT:- As receipts on account of EDC are being deposited in the Consolidated Fund of the State, accordingly directions were issued to colonizer like present assessee, to not deduct TDS. The Co-ordinate Benches in M/s. Perfect Constech P. Ltd. case [2020 (12) TMI 1158 - ITAT DELHI] and RPS Infrastructure Ltd. [2019 (9) TMI 39 - ITAT DELHI] have held that assessee was not required to deduct tax at source at the time of payment of EDC. Thus levy of penalty u/s 271C of the Act cannot be sustained. The grounds raised in the appeals are allowed.
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