TaxTMI 
TaxTMI 
2026 (8) TMI 691
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.... Ld. Commissioner of income Tax (A)-41, New Delhi u/s 250(6) of the Act arising out of order dated 31.03.2014 of ld. AO / DCIT u/s 201(1)/201(1A) of the Act for A.Y. 2012-13. 1.2 ITA No. 7798/Del/2018 filed by the assessee is against order dated 19.09.2018 of Ld. Commissioner of Income Tax (Appeals)-9, New Delhi arising out of assessment order dated 15.12.2017 of Ld. AO/ACIT, Circle 27(1), New Delhi u/s 143(3) of the Act for A.Y. 2015-16. 2. ITA No. 4527/Del/2017 raises following grounds of appeal: "1) The order passed by the Learned Commissioner of Income Tax (Appeals) ("Ld. CIT(A)") under Section 250(6) of the Act is bad in law and on the facts and circumstances of the case. 2) The Ld. CIT(A) has erred in law and on the facts and circumstances of the case in upholding the order of the Ld. Assessing Officer in holding the appellant liable to deduct tax at source under section 194-1 of the Act while making payments to New Okhla Industrial Development Authority ('NOIDA'), Greater Noida Industrial Development Authority ('GNOIDA') and Yamuna Expressway Industrial Development Authority ('YEIDA'). 3) The Ld. CIT(A) has erred in la....
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....4 directed to Ld. AO to recalculate the interest u/s 201(1A) from the date on which tax was deductible till the date of filing of return by the deductee/assessee. Ld. Representative for assessee has pleaded the findings of ld. CIT(A) has correct. The assessee pleaded to pay tax u/s 201(1A) for six months only i.e. from April, 2008 to September, 2008 i.e. date of filing of ITR by Noida. As such, Ld. AO is directed to compute the interest accordingly. Therefore, grounds of appeal are partly accepted. In the result, ITA No. 4527/Del/2017 filed by the assessee is partly allowed. 6. Cross appeals filed by the Assessee and Revenue raised following grounds: 6.1 ITA No. 4526/Del/2017, A.Y. 2012-13 filed by the Assessee "1. The order passed by the Learned Commissioner of Income Tax (Appeals) ("Ld. CIT(A)") under Section 250(6) of the Act is bad in law and on the facts and circumstances of the case. 2) The Ld. CIT(A) has erred in law and on the facts and circumstances of the case in upholding the order of the Ld. Assessing Officer in holding the appellant liable to deduct tax at source under section 194-1 of the Act while making payments to New Okhla Industrial Develo....
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....nd the order of the ACIT be restored. 5. That the appellant craves leave to add or demand any one or more of the ground of the appeal as stated above as and when need for doing so may arise." 7. Ld. Authorized Representative for appellant/assessee submitted that grounds of appeal Nos. 1,5 and 6 are general in nature. Grounds of appeal No. 2 to 4 are regarding non-deduction of TDS on annual lease rent by the assessee. The issue pertains two companies i.e. two companies i.e. Unitech Hi-Tech Developers Ltd. and CIG Infrastructure Pvt Ltd. acquired one plot of land from NOIDA vide lease deed dated 28-12-2006 read with correction deed dated 07-08-2008 for a consideration of Rs. 16,22,84,12,160/- as one time premium for development of residential and industrial sectors in NOIDA. One of the conditions of NOIDA was to form a Special Purpose Vehicle (SPV) of the development work. Hence, both the companies formed one SPV namely Unitech Acacia Projects Ltd. (Appellant Assessee). The Assessee filed appeal before this Hon'ble Tribunal claiming that income of NOIDA is not taxable in view of section 10(20A) of the Income tax Act, 1961, hence, the Assessee is not liable to deduct t....
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....ent Authority vs. UOI cases. The challenge is devoid of merit, since the provision of Section 10(20A) of the Act are not applicable to the case of assessee. Therefore, the grounds of appeal of Revenue are untenable. In the result, the appeal ITA No. 4561/Del/2017 of Revenue is dismissed. 10. ITA No. 7798/Del/2018 raises following grounds: "1. The order passed by the Learned Commissioner of Income Tax (Appeals)-9 ("Ld. CIT(A)") under Section 250 of the Act is bad in law and on the facts and circumstances of the case. 2. The Ld. CIT(A) has erred in iaw and on the facts and circumstances of the case in upholding the order passed by the Ld. Assessing Officer ("Ld. AO") thereby making a disallowance of Rs. 5,11,18,217/from the returned loss of the Appellant of interest u/s 40(a) (1a) on ground of non-deduction of IDS on the interest paid to Unitech Ltd.) 3. Without prejudice, the Ld. CIT(A) has grossly erred in not appreciating the fact that the Appellant had voluntarily disallowed a sum of Rs. 19,769,338/- (being 30% of Rs. 65,897,794/-, as per AS-7) from the proportionate interest disallowed on which TDS is not paid, thereby resulting in double disallowan....
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....ce the compliance of Chapter XVIIB of the Act, by disallowing an expenditure which is otherwise allowable under the provisions of the Act. Therefore, the question of disallowance under section 40(a) arises only when an expenditure is claimed by the assessee without deducting the tax at source as per the provisions of Chapter-XVIIB of the Act. Hence, the action of the ld.AO in disallowing the amount of Rs. 4.23,87,490/- from WIP is patently incorrect application of law and was rightly deleted by the ld.CIT(A) Finding no infirmity in his decision, we uphold the deletion." Copy of the order is attached herewith. 5. Hon'ble Kolkata ITAT in the case of DCIT Vs Saltee Properties Pvt Ltd (ITA no. 856/Kol/2014) held that: "7. We have heard the rival submissions of both the parties and perused the materials available on record. It is the admitted fact that the assessee has no deducted any TDS on the impugned expenses on the ground that the relevant expenses were capitalized as work in progress. Since the expenses has not been claimed in the profit and loss account, the question of any disallowance under section 40(a)(ia) of the Act does not arise." 12. Ld. ....