Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 191 - AT - Income TaxPenalty u/s 271(1)(c) - no reasonable cause within the meaning of section 273B for non deduction of TDS on EDC - AR submitted that 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 - HELD THAT:- As the Co-ordinate Bench orders in M/s. Perfect Constech P. Ltd. [2020 (12) TMI 1158 - ITAT DELHI] and in RPS Infrastructure Ltd.[2019 (9) TMI 39 - ITAT DELHI] which is also relied in M/s Santur Infrastructure Pvt Ltd [2019 (12) TMI 1106 - ITAT DELHI] cast sufficient light on the controversy where in it is held that assessee builder or developers or colonizers are not required to deduct tax at source at the time of payment of EDC to the HUDA. In case of TDI Infrastructure Ltd [2022 (7) TMI 388 - ITAT DELHI] the Bench, to which one of us was in quorum, had taken into consideration a clarification memo no DTCP/ACCFTS/AO(AQ) /CAO/2894/2018 dated 19.06.18 issued by the Directorate of Town and Country Planning, Haryana which made it very obvious that 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. Once the fact of receipt of amounts received by HUDA being deposited in Consolidated Fund of State is established, there can be no second opinion that Assessee was rightly directed by DTCP, Haryana to not deduct the TDS. Even otherwise no intentional default is attributed to assessee and the default, if any, was on account of ambiguity which had arisen out of a direction contained in a statutory document, so no penalty can be justified u/s 271C of the Act, which is meant to address contumacious conduct. Levy of penalty u/s 271C of the Act cannot be sustained. - Decided in favour of assessee.
|