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2017 (8) TMI 1717 - ITAT CHANDIGARHTDS u/s 194C - TDS not paid on External Development Charges to GMADA - 'assessee in default' under the provisions of Section 201(1) & 201(1A) - HELD THAT:- We have gone through the factual material available on record and found that such payments are out of legal obligations rather than contractual arrangements, and it is only when payments are made "in pursuance of a contract" that the provisions of section 194C come into play. The contract may be oral or written, express or implied but there must be a contract nevertheless. In the present case, however, the payment is on account of legal obligation. We have further gone through the order of the Ld. CIT (A) for the AY 2013-14 in the case of the assessee where in it was held the assessee is not liable to deduct TDS on the EDC payments. On the factual matrix of the assessee these payments do not fall under the category of contractual payment and hence assessee is not liable to TDS under section 194C. Decided in favour of assessee.
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