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2023 (2) TMI 501 - AT - Income TaxLevy of penalty u/s 271C - failure to deduct tax on the payment made for External Development Charges (EDC) to HUDA - HELD THAT:- As decided in M/s Vipul Ltd [2022 (8) TMI 34 - ITAT DELHI] 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. Ground is allowed in favour of assessee/appellant.
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