development charges paid to PUDA u/s 43B

[satbir singhwahi]

whether Development charges paid to Punjab urban development Authority (PUDA) , covered by section 43B. The charges shown as payable has been disallowed by A.O.  As per the letter from PUDA the charges per Acre of land were payable wihin 1.5 year.

AI Summary

Development charges to PUDA not under section 43B of the Income Tax Act; deemed contractual, not statutory obligations. A query was raised regarding whether development charges paid to the Punjab Urban Development Authority (PUDA) fall under section 43B of the Income Tax Act. The charges, shown as payable, were disallowed by the Assessing Officer. According to a letter from PUDA, these charges were due within 1.5 years per acre of land. The response clarified that these charges are not considered a tax, duty, cess, or fee and are payable under a contractual obligation rather than statutory requirements.