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2022 (12) TMI 181 - AT - Income TaxPenalty u/s 271C - TDS was not made on payment of External Development Charges (EDC) - Assessee argued provisions of section 194C were not applicable on payment, of EDC because the payment was made to the Government and not to the HUDA - HELD THAT:- As decided in own case for the Assessment Year 2014-15 [2022 (7) TMI 737 - ITAT DELHI] as relying on TDI Infrastructure [2022 (7) TMI 388 - ITAT DELHI] 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. As a wholesome effect of above, the Bench is of considered opinion that levy of penalty u/s 271C of the Act cannot be sustained. - Decided in favour of assessee.
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