TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 104
X X X X Extracts X X X X
X X X X Extracts X X X X
....re-filing the appeal is condoned. The same is allowed. 2. The application stands disposed of. ITA 308/2025 3. This appeal has been filed by the Revenue challenging the order of the Income Tax Appellate Tribunal ('ITAT', hereinafter) dated 14.02.2024. 4. The assessee who is the respondent herein is engaged in the business of real estate development as a colonizer, developer of residential and commercial properties. Upon receiving certain information from the office of the Deputy Commissioner of Income Tax (TDS) Circle, Panchkula, a survey/inspection under Section 133A of the Income Tax Act 1961 ('the Act', hereinafter) was carried out at the premises of Haryana Urban Development Authority (HUDA) and also Sky-High Land Con Pvt. Lt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efore the ITAT, which was dismissed by observing that the CIT(A) was right in following the judgment of this Court in the assessee's own case. 8. Mr. Vipul Agrawal, learned counsel for the Revenue submits that Chapter XVII-B of the Act, particularly Section 190 thereof contains a non-obstante clause and places a responsibility upon a person effecting a payment which is taxable under the provisions of the Act to deduct and collect taxes at source. It is only in certain contingencies such as those described under Section 195 of the Act that the statute enables a person responsible for effecting a payment to consider whether the amount sought to be paid would be chargeable under the Act. 9. He also submits that this Court in the case of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned, computed or is recoverable by the DTCP is wholly inconsequential since Section 194C is solely concerned with a payment being made to a contractor who has an arrangement with a specified person. Merely because an exercise of quantification is undertaken by the specified person, the same would have no bearing on the applicability of Section I94C. We would thus be of the opinion that the moment the petitioners effected a payment in favour of HSVP in connection with the external development work which was to be executed by it pursuant to the arrangement that existed between the said entity and the State Government, the provisions of Section 194C stood attracted" 11. According to him, the judgment leaves no doubt to the fact that payment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s that EDC is subject to TDS under Section 194I of the Act as it is in the nature of an arrangement for use of land and as such, TDS needs to be paid as if the payment was rent. 17. The questions of law which have been proposed in the present appeal are the following: "A. Whether the Hon'ble ITAT is right in not remanding the case back to the AO to decide the applicability of the tax deduction provisions under the Income-tax Act, 1961afresh on merits considering the nature of payment made to HUDA and the judgment of this Hon'ble Court in the case of Puri Constructions Pvt. Ltd. vs. Addl. CIT & Ors. (2024) 462 ITR 326? B. Whether the Id. ITAT is correct in deleting the applicability of tax deduction on EDC paymen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; it does not affect the substratum of the impugned order or renders it vulnerable to challenge. 13. We do not find any merit in the contention that the substratum of the impugned order is correct, and the AO has merely referred to a wrong provision of law. 14. The question as to the nature of EDC payment was squarely one of the issues that was required to be addressed by the AO. He had concluded that the same was 'rent' as it was in nature of an arrangement to use land. It is not open for the respondents to now contend that EDC charges are payment made to a contractor under a contract and not 'rent' under an arrangement to use land." 20. The SLP against aforesaid judgment was dismissed vide order dated 29.04.2024 UoI V....