9911796707
TMI Blog2023 (9) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of external development charges (EDC). Such charges were not deposited with the Town Country Planning within the due date stipulated in the agreement but rather payment was delayed - In the opinion of ld. Pr. CIT, this expenditure ought to have been disallowed to the assessee by the ld. Assessing Officer on the ground that it is penal in nature - HELD THAT:- We are of the view that Explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d it. AO has not committed any error and his order cannot be termed as erroneous, which has caused prejudice to the interest of revenue. Thus we allow this appeal of the assessee and quash the 263 order impugned herein. Appeal of assessee allowed. - Shri Rajpal Yadav, Vice-President And Shri Rajesh Kumar, Accountant Member For the Assesseee : Shri Sudip Sen, Staff For the Revenue : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the assistance of ld. CIT(DR). 3. A perusal of the impugned order would reveal that ld. Pr. Commissioner has treated the assessment order as erroneous and prejudicial to the interest of revenue on the ground that the assessee had entered into an agreement with Director of Town Country Planning Haryana whereby it was supposed to make the payments of external development charges (EDC). Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a compensatory payment, which does not fall in the category of any penalty. The ld. Pr. CIT has misconstrued the nature of this interest payment as a penalty and termed the assessment order as erroneous, which has caused prejudice to the interest of revenue by not charging of tax on this amount. Since we have held that it is not in the nature of penalty, rather a compensatory in nature, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
