https://www.taxtmi.com/caselaws?id=449605 External development charges paid to a statutory development authority for colony development are subject to tax deduction at source under Section 194C where they further an arrangement for execution of external development works. A written contract directly between the developer and the authority is not necessary. The statutory authority's separate legal personality prevents its receipts, funds and assets from being treated as those of the State; payments to it therefore do not qualify for the Section 196 exemption applicable to the Government and specified entities. Notices need not be quashed for imprecise statutory references where the Section 194C basis is sufficiently clear and the payer has had an effective opportunity to respond. en-us Tue, 13 Feb 2024 00:00:00 +0530 Tue, 23 Sep 2025 11:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449605 External development charges paid to a statutory development authority for colony development are subject to tax deduction at source under Section 194C where they further an arrangement for execution of external development works. A written contract directly between the developer and the authority is not necessary. The statutory authority's separate legal personality prevents its receipts, funds and assets from being treated as those of the State; payments to it therefore do not qualify for the Section 196 exemption applicable to the Government and specified entities. Notices need not be quashed for imprecise statutory references where the Section 194C basis is sufficiently clear and the payer has had an effective opportunity to respond. Case-Laws Income Tax Tue, 13 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449605