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TMI Blog2022 (5) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... ot applicable on payments to agencies like HUDA on behalf of the State Government. The imposition of penalty under Section 271C was consequently found to be unsustainable in the absence of default of Section 194C. The facts and issue being identical, in the light of the clarification noted above coupled with view taken by the Coordinate Bench in the identical facts situation, we see no reason to depart therefrom. Consequently, we find merit in the plea raised on behalf of the assessee for cancellation of penalty imposed under Section 271C of the Act. - Assessee appeal allowed. - I.T.A. No.5842/DEL/2019 - - - Dated:- 26-5-2022 - Shri Kul Bharat, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Appellant : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 ( the Act ) was carried at the premises of Haryana Urban Development Authority (HUDA). During the survey proceedings, it was observed by the Revenue Authorities that HUDA receives payment from various parties on account of External Development Charges ( EDC ). During the year under consideration, the assessee is also found to have paid such amount of Rs.3,07,23,000/- as EDC to HUDA. Consequent upon the survey proceedings undertaken on HUDA, a notice under section 201/201(1A) of the Act dated 19.05.2017 was issued upon the assessee by Assessing Officer along with a questionnaire requiring explanation for non-deduction of TDS on EDC payments made to HUDA. The Assessee submitted its detailed submission dated 01.06.2017 stating that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority (HUDA). With the assistance of the ld. counsel, we find that the Directorate of Town and Country Planning, Haryana (Haryana Government) has issued clarification on TDS deduction on EDC payments vide letter dated 19.06.2018 which is self explanatory and thus reproduced herein for ready reference: To The Chief Administrator, Haryana Shahari Vikas Pradhikaran, Panchkula, Memo No.DTCP/ACCTTS/Assessing Officer(HQ)/CAO/2894/2018 Date: 19.6.2018 Subject: Clarification on TDS Deductions on EDC Payments. Please refer to the matter cited as subject above. 1. Section 2(g) of the Haryana Development and Regulation of Urban Areas Act, 1975 defines that external development works (hereinafter referred as ED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not sufficient to carry out the all development works under EDC for the urban estate as per approved development plans, therefore to meet out the shortfall, a new scheme Swaran Jayanti Haryana Urban Infrastructure Development Scheme (renamed as Mangal Nagar Vikas Yojana was approved by the State Govt. and appropriate budget provision for execution of development works has been made in the said scheme. From Financial Year 2017-18, the receipts on account of EDC is being deposited in the consolidated fund of the State under Major Receipt Head-0217 receipts and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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