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2023 (7) TMI 1198 - AT - Income TaxTDS u/s 194C - Default u/s 201(1) and 201(1A) - Non deduction of tds on payment towards EDC charges to DGTCP Haryana through HUDA without deduction of TDS - HELD THAT:- There is no TDS liability on statutory payments made to Government of Haryana, Town and Country Planning Department is part of Government of Haryana. HUDA is only authorized to accept payment on behalf of Town and Country Planning Department. Furthermore, EDC is a charge levied by Government for carrying out External Development Work to be executed in the periphery of or outside colony/area for the benefit of colony/area. EDC charge is deposited in the receipt head of ‘TCP Department’ being Government. The assessee is not liable to deduct TDS at the time of payment of EDC as the same was not out of any statutory or contractual liability towards HUDA per se. The issue is no longer res integra. The identical issue has came up for adjudication before the Co-ordinate Bench of Tribunal in the case of Spaze Tower Pvt. Ltd. [2022 (5) TMI 1344 - ITAT DELHI] Thus we hold that imposition of demand computed u/s 201(1) and consequential interest u/s 201(1A) is not justified in view of the finding of the Co-ordinate Bench that the assessee has not committed any violation of provision of Chapter XVII B of the Act by making payment towards EDC charges to DGTCP Haryana through HUDA without deduction of TDS. Also decided in UNION BANK OF INDIA VERSUS ADDITIONAL COMMISSIONER OF INCOME TAX (TDS) KANPUR [2022 (3) TMI 623 - SC ORDER] TDS provisions for payments made to such Authority are not applicable. Appeal of assessee allowed.
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