2026 (1) TMI 11

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act, 1961 (hereinafter referred to as 'the Act') dated 25.03.2021 by the Assessing Officer, ITO (TDS), Ward-77(2), Delhi (hereinafter referred to as 'ld. AO'). 2. The assessee had filed revised ground no. 1 before us which reads as under:- "That that under the facts and circumstances, the liability of deduction of TDS u/s 201(1) and under section 201(1A) on EDC (External Development Charges) payable to HUDA for Rs 10,87,04,000/- arose in F.Y.11-12 (AY 12-13) under section 194C(1), being Yr (F.Y. 11-12) in which credit for said EDC payable stood entered in the books of A/cs 31-3-12, therefore the liability u/s 201(1) and u/s 201(1A) relates to AY 12-13, however incorrectly created for AY 14-15, hence, the impugned order being pa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and under the direction of Department of Town and Country Planning (DTCP), Government of Haryana, as the assessee company is not dealing with HUDA. However, this representation did not benefit the assessee and an order stood passed under section 201(1) read with section 201(1A) of the Act on 25-3-2021 for assessment year 2014-15, treating the assessee as an 'assessee in default' for non-deduction of tax at source under section 194C of the Act in respect of EDC paid to HUDA in the sum of Rs 5,65,600 and interest of Rs 5,33,464. This action of the Learned AO was upheld by the Learned CITA. 6. Whether tax is deductible at source or not on EDC paid /payable to HUDA is not disputed by the Learned AR before us. The Learned DR before us was giv....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 194C of the Act, TDS provisions get triggered either at the time of credit or payment, whichever is earlier. In the instant case, the credit for EDC charges payable to HUDA had arose earlier i.e. in assessment year 2012-13 itself and the payment for the same had been made by the assessee in assessment year 2014-15. Hence the liability for TDS arose in assessment year 2012-13 and assessee could be treated as 'assessee in default' for assessment year 2012-13 under section 201(1) of the Act and consequential interest under section 201(1A) of the Act in assessment year 2012-13 only. Hence we hold that the assessee herein cannot be treated as an 'assessee in default' for assessment year 2014-15 in respect of EDC charges payable to HUDA in view ....