9911796707
TMI Blog2017 (8) TMI 1717X X X X Extracts X X X X X X X X Extracts X X X X ..... vertheless. In the present case, however, the payment is on account of legal obligation. We have further gone through the order of the Ld. CIT (A) for the AY 2013-14 in the case of the assessee where in it was held the assessee is not liable to deduct TDS on the EDC payments. On the factual matrix of the assessee these payments do not fall under the category of contractual payment and hence assessee is not liable to TDS under section 194C. Decided in favour of assessee. - Shri Sanjay Garg, Judicial Member And Shri B.R.R. Kumar, Accountant Member For the Assessee : Sh. Vineet Krishan. For the Revenue : Sh. Ravi Sarangal. ORDER PER B.R.R. KUMAR A.M. This appeal has been filed by the assessee against the Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. The only effective ground is against the demand raised of Rs.19,95,305/- U/S 201(1)/201(1A) of the Act by treating the assessee as 'assessee in default' for non - deduction of tax u/s 194C on payments of EDC made to GMADA of Rs. 8,09,12,000/-. 4. Briefly, the facts on the issue are that the appellant company has paid External Development Charges (EDC) of Rs 8,09,12,000/- to GMADA and has not deducted tax as per the provisions of section 194C of the Act. Assessing officer noted that EDC is an advance payment received by GMADA from private builders for doing civil work. The EDC received by GAMADA has been spent on repair / maintenance/ creating infrastructure for Pvt. colonizers. On perusal of the notification GMADA the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in any way alter the facts of the case. 7. Ld. CIT(A) held that the payments on EDC charges to GMADA which in the nature of the contractual payment which is the income in the hands of GMADA and therefore the assessee was under obligation to deduct tax on this payment as per the provision of section 194C. 8. Before us the Ld.AR argued that there is no contract between GMADA and the assessee hence the payment did not fall under the category of contractual payment. The Ld. AR strongly supported the orders of the lower authorities. 9. We have gone through the factual material available on record and found that such payments are out of legal obligations rather than contractual arrangements, and it is only when payments are made in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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