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.

[CAGOPALJI AGRAWAL]

These charges are not in the nature of tax, duty, cess or fee.Secondly these charges are payable under contractual obligation not under any statute.

AI Summary

Development charges not covered by section 43B where they are contractual obligations rather than statutory taxes, duties, cess, or fees.
The respondent stated that the development charges payable to PUDA are not a tax, duty, cess or fee and arise under a contractual obligation rather than under statute, indicating they should be treated as contractual payments rather than statutory dues for the purpose of section 43B.