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2021 (9) TMI 211 - AT - Income TaxTDS u/s 194I - Non deduction of TDS on lease rent paid to Noida Authoritiy towards the cost of land allotted to the assessee for group housing project - CIT- A held that the assessee is not to be treated as an assessee in default in view of the letter received from Noida Authority, which disabled the assessee from deducting TDS on the payments made to NOIDA - HELD THAT:- CIT(A), while following the decision in Rajesh Projects (India) Pvt. Ltd. [2017 (2) TMI 1109 - DELHI HIGH COURT] recorded a finding that the assessee is not to be considered as an assessee in default in view of specific requirement of Noida Authority not to deduct TDS on the payments made to them. Hon’ble Court directed that wherever amounts have been paid by the petitioners, towards TDS as a result of the coercive process used by the Revenue, the GNOIDA shall make appropriate orders to credit/reimburse such payments; and that in case payments are made through deposit, over and above the rental amounts paid to the GNOIDA without TDS, the income tax authorities shall not pursue any coercive proceedings and the GNOIDA shall duly reimburse the petitioners for such amounts. Above observations made by Hon’ble High Court in Rajesh Projects (India) Pvt. Ltd. clearly go to show that the relief granted to the assesses was not only in respect of rents, but to all amounts which are paid over and above the rental amounts to GNOIDA without TDS - since the assessee was directed not to be treated as assessee in default and in view of the directions of the Hon’ble High Court in respect of the payments made to GNOIDA over and above the rental amounts, no addition could be made in terms of the orders of the ld. CIT(A) also. We direct the authorities not to add any amount on this score. - Decided in favour of assessee.
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