TaxTMI 
TaxTMI 
2026 (3) TMI 795
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....2016-17 Dated 28.06.2024 JCIT(OSD) TDS Circle, Gurgaon Dated 22.04.2022 5432/D/24 2018-19 CIT(A)-3, Gurgaon Appeal No: 10713/2017-18 Dated 28.06.2024 JCIT(OSD) TDS Circle, Gurgaon Dated 22.04.2022 5433/D/24 2019-20 CIT(A)-3, Gurgaon Appeal No: 10953/2018-19 Dated 28.06.2024 JCIT(OSD) TDS Circle, Gurgaon Dated 22.04.2022 5434/D/24 2021-22 CIT(A)-3, Gurgaon Appeal No: 10071/2020-21 Dated 28.06.2024 JCIT(OSD) TDS Circle, Gurgaon Dated 26.04.2022 5660/D/24 2020-21 CIT(A)-3, Gurgaon Appeal No: 10816/2019-20 Dated 28.06.2024 JCIT(OSD) TDS Circle, Gurgaon Dated 22.04.2022 2. The cases were heard together as they involved common question of law and facts, therefore, they are being adjudicated together. The appellant company is engaged in the business of real estate development and during the year under consideration appellant deposited External Development Charges (EDC) without deduction of TDS. A survey was conducted at the premises of appellant on 28.12.2021 followed by issuance of show cause notice u/s 201(1)/201(1A) of the Act. Pursuant to these proceedings the impugned orders were passed on 22.04.2022 treating appellant as an asses....
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.... to be no doubt that the same is not applicable in regard to EDC Charges paid to HUDA as held by Hon'ble Delhi High Court in the case of DLF Home Panchkula Pvt. Ltd. vs JCIT (OSD) (supra). Therefore, in the light of the aforesaid, we inclined to sustain the grounds of appeal no.4 with its sub grounds and the appeals are allowed." 8. In the light of aforesaid circumstances appeal of assesse ITA No. 5431/Del/2024 for AY: 2017-18 deserves to be allowed and accordingly ordered. 9. In ITA No. 5432 to 5434 & 5660/Del/2024 for AYs: 2018-19 to 2021- 22 ld. counsel has submitted that prior to Financial Year 2017-18 the payment of EDC was made to the Director, Town and Country Planning Haryana (DTCP) who subsequently remitted the collected amount to the Haryana Urban Development Authority (HUDA). However, starting from Financial Year 2017-18 due to new scheme of "Swaran Jayanti Haryana Urban Infrastructure Development Scheme" significant change was implemented and the receipt on account of EDC were required to be deposited in consolidated fund of Haryana Major Head -0217 receipts. License/CLU holders were directed to make EDC payments online through e- payment gateway under receipt....
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....Act, 1975, the amount of EDC is charged from developers on account of proportionate cost of infrastructure development such as water supply, sewerage/drainage, electricity supply etc. carried out by State Govt./local authority. The amount, period for the payment and manner of depositing EDC charges are regulated by the terms and condition laid in the license granted by the DCP. Accordingly, the appellant had made payments of Rs. 5,56,44,312/- on account of External Development Charges(EDC) to the DTCP upon which TDS was not deducted. 6.3 During the assessment proceedings, it was observed by the AO that the appellant had not deducted TDS on the payment of the EDC made to DCP under section 194C of the Act. Thus, the AO held the appellant as 'assessee in default within the meaning of sections 201(1)/201(1A) of the Act and raised demands accordingly. Therefore, in order to decide the grounds of appeal raised by the appellant, it is imperative to examine whether payments on account of EDC made by the appellant to DCP are subjected to the provisions of section 194C of the Act or not. 6.4 In this respect, it is observed that there was in existence an arrangement betw....
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....Hon'ble High Court also turned out the challenge to the clarification issued by CBDT dated 23.12.2017 which is reproduced as above. Thus, it is noted that the judicial pronouncements relied upon the appellant have been superseded by the aforementioned latest judgment of Hon'ble Delhi High Court, moreover, it is also pertinent to mention that in such judicial pronouncements, CBDT memorandum has not been challenged or been discussed by the respective judicial forums. Further, it is also seen that the ratio of Hon'ble Apex Court in the case of JIT (OSD) vs DLF Home Panchkula (P) Ltd. 161 Taxmann.com 237 (SC) (2024) relates to that it was not open for revenue to now contend whether EDC charges were payment made to a contractor under a contract or rent, hence this case law is not applicable for the issue under consideration in the instant appeal. 6.5 Keeping in view the above facts, discussion and respectfully following the ratio of decision pronounced by the Hon'ble High Court and CBDT memorandum, it is held that TDS u/s194C of the Act was to be deducted on EDC payments to DCP. Therefore, keeping in view the provisions of section 194C of the Act, the appellant ....