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TMI Blog2023 (7) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt head of TCP Department being Government. The assessee is not liable to deduct TDS at the time of payment of EDC as the same was not out of any statutory or contractual liability towards HUDA per se. The issue is no longer res integra. The identical issue has came up for adjudication before the Co-ordinate Bench of Tribunal in the case of Spaze Tower Pvt. Ltd. [ 2022 (5) TMI 1344 - ITAT DELHI] Thus we hold that imposition of demand computed u/s 201(1) and consequential interest u/s 201(1A) is not justified in view of the finding of the Co-ordinate Bench that the assessee has not committed any violation of provision of Chapter XVII B of the Act by making payment towards EDC charges to DGTCP Haryana through HUDA without deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is not liable to deduct TDS on payment made to HUDA on account of EDC charges. The ld. counsel submits that the assessee-company has not purchased any property from HUDA but however has paid enhanced EDC of Rs. 40 Lakh on account of Group Housing being constructed on land at Ballabhgarh. There is no TDS liability on statutory payments made to Government of Haryana, Town and Country Planning Department is part of Government of Haryana. HUDA is only authorized to accept payment on behalf of Town and Country Planning Department. Furthermore, EDC is a charge levied by Government for carrying out External Development Work to be executed in the periphery of or outside colony/area for the benefit of colony/area. The EDC charge is deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 if the external devel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 officer (HO) For: Director Town ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdinate Bench that the assessee has not committed any violation of provision of Chapter XVII B of the Act by making payment towards EDC charges to DGTCP Haryana through HUDA without deduction of TDS. 6. It is further noticed that Hon ble Supreme Court in the case of Union of India vs. Additional Commissioner of Income Tax (TDS), Kanpur, 136 taxmann.com 155 (SC) in the context of Agra Development Authority observed that such authority was statutory body constituted under UP Urban Planning and Development Act, 1973 and covered by notification issued. After considering the terms of notification, it was held that TDS provisions for payments made to such Authority are not applicable. Same principles would apply mutatis mutandis in the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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