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<h1>Notice issued on liability to deduct tax for external development charges under Haryana law</h1> <h3>DLF Utilities Ltd. Versus The Deputy Commissioner of Income Tax (TDS), Gurgaon and another</h3> The High Court of Punjab and Haryana issued notice of motion in a case concerning liability to deduct tax at source for external development charges under ... Liability of tds - payments were made to Government - whether the external development charges are payable by the petitioner under the Haryana Development and Regulation of Urban Areas Act, 1975 to the Government of Haryana or to any other party? - If it is to the Government of Haryana, it is possible that the exemption under Section 196 of the Income Tax Act, 1961 would apply - HELD THAT:- The petitioner states that it entered into the agreements in Forms LC-IV and LC-IV A. Prima facie, the agreements are with the Governor of Haryana. In these circumstances, the petitioner shall pursuant to the impugned notice dated 22.01.2018 appear before the officer. Till further orders, the order, if any, however, shall not be given effect to. The High Court of Punjab and Haryana issued notice of motion in a case regarding liability to deduct tax at source for external development charges under the Haryana Development and Regulation of Urban Areas Act, 1975. The petitioner entered agreements with the Governor of Haryana. The petitioner is required to appear before the officer as per the impugned notice but the order shall not be given effect to until further orders.