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2023 (4) TMI 473 - ITAT DELHITDS u/s 194A - default as per Sec 201(1)/201(1A) - Non deduction of TDS on payment by the builder/developer for delayed allotment of plot of land or other property - HELD THAT:- As decided in the case of West Bengal Housing Infrastructure Development Corporation [2018 (9) TMI 114 - CALCUTTA HIGH COURT] wherein held that the payment for delayed allotment of plot of land by the builder/developer is not interest u/s. 2(28A) since there was neither any borrowings of money nor was there incurring of debt on part of assessee therefore TDS provision of section 194A of the Act cannot applied to such a situation to treat the assessee as assessee in default alleging the non-compliance. Also see case of Delhi Development Authority [1995 (1) TMI 126 - ITAT DELHI][ Thus we reach to a logical conclusion that the impugned payment is nothing but compensation/damages paid by the assessee to its allottees which cannot be tagged as interest u/s. 2(28A) - TDS provision of section 194A of the Act is not applicable towards such payment. Assessee cannot be treated as assessee in default for noncompliance of TDS provisions on account of such payments. Appeal of the assessee is allowed.
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