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TMI Blog2022 (9) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 271C of the Income Tax Act, 1961 (the Act). 2. The assessee in its appeals raised the following common grounds of appeal:- "1. The Penalty Order passed by the Ld. JCIT (OSD) is bad in law; 2. That on the facts and circumstances of the case and in law, the order passed by the Ld. CIT (A) dismissing the appeal of assessee by agreeing with the JCIT (OSD) and justifying the penalty of Rs. 2,01,960/- under section 271C is bad in law; 3. That appellant craves to add, alter or amend, any ground of appeal during or time of hearing of appeal; 4. The Ld. JCIT (OSD) has grossly erred in imposing penalty with preconceived notion and without appreciating material on record." 3. On hearing the rival contentions and perusing the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in Para 4.3.2, subparagraph (iv) of the order passed u/s 271C of the Act, the LD.AO has himself noted that the demand draft of the EDC amounts are drawn in favour of the Chief Administrator, HUDA though routed through the Director General, Town and Country Planning, Sector- 18, Chandigarh. He has also referred to the notes to accounts to the financial statements of HUDA wherein it has been stated that "other liabilities also include external development charges received through DGTCP, Department of Haryana for execution of various EDC works. The expenditure against which have been booked in Development Work in Progress, Enhancement compensation and Land cost." Undisputedly, the payment of EDC was issued in the name of Chief Administra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12.2019, Sarv Estate Pvt. Ltd. vs. JCIT in ITA No.5337 & 5338/Del/2019 vide order dated 13.09.2019 and Shiv Sai Infrastructure (Pvt.) Ltd. vs. ACIT in ITA No.5713/Del/2019 vide order dated 11.09.2019. A similar view was also taken by the Coordinate Bench of ITAT Delhi in case of R.P.S Infrastructure Ltd. vs. ACIT in 5805, 5806 & 5349/Del/2019 vide order dated 23.07.2019. Therefore, on an identical facts and respectfully following the orders of the Co-ordinate Benches as aforesaid, we hold that the impugned penalty u/s 271C of the Act is not sustainable. The order of the Ld. CIT (A) is set aside and the penalty is directed to be deleted." 7.2 Similarly para no. 11 in the case RPS Infrastructure Ltd ( Supra) is also reproduced below; "11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evelopmental activities in the state of Haryana. Such Authorities admittedly are not in the category of local authority or Government. These payments were made during the year 2013-2016 and during this period, that is, prior to issue of CBDT Circular dated 23.12.2017, there was no clarity as regard the deduction of tax on these payments. We are of the view that the assesse was under a bonafide belief that no tax is required to be deducted at source on such payments, firstly, for the reason that agreement was between DTCP, who is Governmental authority and licence was granted by the Government and EDC charges was directed to be paid to HUDA, therefore, this could led to reasonable cause that TDS was not required to be deducted; Secondly, DTC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 172 (Del) and in the case of CIT v. Mitsui & Company Ltd. 272 ITR 545. Respectfully following the aforesaid judgments of Hon'ble Delhi High Court and the decision of the ITAT, Delhi in the case of Television Eighteen India Ltd., we allow the assessee's appeal and cancel the penalty as levied u/s 271-C." 3. Being aggrieved, the Revenue took up the matter before the High Court of Delhi against the order of the Income Tax Appellate Tribunal. The High Court rejected the appeal only on the ground that no Substantial question of law arises in the matter. 4. On facts, we are convinced that there is no substantial question of law, the facts and law having properly and correctly been assessed and approached by the Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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