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TMI Blog2023 (2) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 - - - Dated:- 3-2-2023 - Shri Challa Nagendra Prasad, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Assessee : Shri Ruchesh Sinha, Advocate; For the Department : Shri S. M. Singh, Sr. D. R.; ORDER PER C. N. PRASAD, J. M. : 1. These three appeals are filed by the assessee against the common order of the ld. Commissioner of Income Tax (Appeals)-31 [hereinafter referred to CIT (Appeals)] New Delhi, dated 21.06.2019 for assessment years 2014-15, 2015-16 and 2016-17 in sustaining the penalty levied under section 271C of the Income Tax Act, 1961 (the Act) for non-deduction of TDS on the External Development Charges paid to Haryana Urban Development Authority [HUDA]. 2. The ld. Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Coordinate Bench of Tribunal in the case of Spaze Tower Pvt. Ltd. vs. JCIT, New Delhi in ITA No.5842/Del/2019, order dated 26.05.2022. The relevant operative paragraphs of the order of the Co-ordinate Bench squarely covers the issue which reads as under: 6. We have carefully considered the rival submissions. The Assessing Officer / JCIT levied penalty of Rs.6,14,460/- under Section 271C for short deduct ion / non-deduction of tax at source allegging default committed by the assessee under Sect ion 194C on payment of External Development Charges (EDC) to Haryana Urban Development Authority (HUDA). With the assistance of the ld. counsel , we find that the Directorate of Town and Country Planning, Haryana (Haryana Government) has issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the periphery of or outside colony/area for the benefit of the colony/area are being executed by Haryana Shahari Vikas Pradhikaran thereafter HSVP) which is the Development Authority or state Govt. Earlier upto 31.03.2017, Department of Town 8t Country Planning used to collect the external development charges from the colonizer to whom licences have been granted under Act No. 8 of 1975 and the persons to whom permission for change of land use have been granted under Act No. 41 of 1963, in the shape of bank draft drawn in favour of CA, HSVP and send the same to CA, HSVP. 4. As the receipt on account of EDC was not sufficient to carry out the al l development works under EDC for the urban estate as per approved development plans, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 8. We also notice that identical issue has been examined by the Coordinate Bench in the case of Perfect Constech Pvt. Ltd. vs. Additional Commissioner of Income Tax in ITA No.6907/Del/2019 order dated 29.12.2020 wherein Co-ordinate Bench found that the provisions of Section 194C are not 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 of the Act. 9. 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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