TaxTMI 
TaxTMI 
2023 (12) TMI 1522
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....e and in law, the CIT(A) was justified in not appreciating the fact that decision of Hon'ble ITAT in the judgments relied upon that the assessee was not liable to deduct tax at source on External Development Charges (EDC) is in contravention to CBDT's Office Memorandum vide F. No. 370133/37/2017-TPL dated 23.12.2017, wherein it has been clearly mentioned that the TDS provisions would be applicable on EDC payable to HUDA. 2. Whether on the facts and in the circumstances of the case and in law, the CIT(A) was justified in not appreciating the fact that judgments relied upon by him are of no avail in the present case as subject matter of appeal in those cases before the Hon'ble Tribunal was penalty order u/s. 271C of the L....
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....d first appellate authority. 5. Learned Commissioner (Appeals) referred to a decision of ITAT Delhi Bench, wherein it was held that payment of EDC is not for carrying out any specific work on behalf of the payer, but rather the Government of Haryana, which levies such charges for carrying out external development and engages the service of HUDA for execution of the work, there was no requirement of deduction of tax at source, while making such payment. Relying upon the said decision learned first appellate authority deleted the demand. 6. We have considered rival submissions and perused the materials on record. There are plethora of decisions, wherein it has been held that there is no requirement for deduction of tax at source on paym....
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....bject above. 1. Section 2(g) of the Haryana Development and Regulation of Urban Areas Act, 1975 defines that external development works (hereinafter referred as EDW) shall includes any or all infrastructure development works like water supply, sewerage, drains, provisions of treatment and disposal of sewage, sullage and storm water, roads, electrical works, solid waste management and disposal, slaughter houses, colleges, hospitals, stadium/sports complex, fire stations, grid sub-stations etc. and/or any other work which the Director may specify to be executed in the periphery of or outside colony/area for the benefit of the colony/area. 2. As per Section 3(3)(ii), license holder has to pay proportionate development charges....
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....nd all license/CLU holders have also been directed vide order dated 12.05,2017 that payment of EDC in respect of license/CLU granted by TCP Deptt. may be made online through e payment gateway or in shape of demand drafts favouring Director, Town 6 Country Planning, Haryana. Required funds for execution of development works are released to HSVP after granting the sanction from the Finance Department. It is, therefore, clarified that HSVP is only an executing agency for and on behalf of State Govt. for carrying out EDW for which funds are given to HSVP by the Govt. through TCP Deptt. Since, payment for EDC has been made to TCP Deptt. of State Govt., no TDS was/is to be deducted out of payment made to Govt. for EDW. Accounts office....