TaxTMI 
TaxTMI 
2020 (12) TMI 1158
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....facts of the case are that a survey/inspection u/s 133A of the Act was carried out at the premises of Haryana Urban Development Authority (HUDA), Panchkula on 09/02/2017 and 14/02/2017. During the course of search, it was noticed that the assessee had made a payment of External Development Charges (EDC) to HUDA amounting to Rs. 41,90,00,000/- during the Financial Year under consideration. The Assessing Officer (AO) noted that the participating private developers were required to pay EDC as provided in the license for setting up a commercial colony on urbanisable land held by it in vicinity and developed by HUDA and that the license is issued by Director, Town and Country Planning, Haryana. The AO further observed that the assessee had faile....
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....0/- u/s 271C of the Act beyond the limitation period and hence the same deserves to be quashed. 4. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) was unjustified in confirming the action of the Ld. AO wherein he has erred in imposing penalty of Rs. 83,80,000/- u/s 271C of the Act in haste, without affording reasonable opportunity and with a biased and prejudiced mind. 5. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same." 3.0 The Ld. Authorized Representative (AR) submitted that the imposition of penalty was incorrect in as much as the payment of EDC had been made by the assessee in accordance with the license grante....
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.... 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 Administrator, HUDA. It is also not in dispute that HUDA has shown EDC as current liability in the balance sheet, but in the 'Notes' to the Accounts Forming part of the Balance Sheet, it has been shown that EDC has been received for execution of various external development works and as and when the development works are carried out, the EDC's liabilities are reduced accordingly. It is also not in dis....