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TMI Blog2025 (1) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income-tax (TDS), New Delhi (hereinafter referred to 'ld. CIT (TDS)') all dated 26.03.2024 for AY 2015-16. 2. Since the issues are common and the appeals are connected, hence the same are heard together and being disposed off by this common order. We take up the assessee's appeal being ITA No.2369/Del/2024 for AY 2015-16 as lead case to adjudicate the issues under consideration. 3. The relevant facts of the case are, assessee is engaged in the business of real estate including residential flats and commercial space. An information was received from ITO, TDS Ward 73(4), Delhi. Based on the information, the case of the assessee was taken up for deep verification on the compliance of TDS provisions. Accordingly, notices for verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined the liability u/s 201/201(1A) of the Act of Rs.21,67,55,380/- and a chart showing the determination of such liability u/s 201/201(1A) is reproduced at the assessment order itself. 5. Aggrieved with the above order, assessee preferred an appeal before the ld. CIT (A) and as per the information, it is still pending before the ld. CIT (A). 6. Ld. CIT (TDS), Delhi-1 on examination of records of the present case for the assessment Year 2014-15 relating to EDC payment made to HUDA observed that the AO has initiated the proceedings u/s 201/201(1A) determining the penal interest u/s 194I of the Act. However, the decision of the Hon'ble Delhi High Court in the case of Puri Construction (P.) Ltd. vs. Addl.CIT (2024) 159 taxmann.com 444 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in accordance with law and also is erroneous and prejudicial to the interest of Revenue. Accordingly, AO was directed to enquire and examine the applicability of TDS provisions u/s 194C of the Act in respect of EDC payment made to HUDA after giving opportunity to the assessee. 7. Aggrieved with the above order, assessee is in appeal before us raising following grounds of appeal :- "1. That on the facts and circumstances of the case, the CIT (TDS) has erred in law in invoking the provisions of section 263 of the Income Tax Act, 1961. 2. That the CIT (TDS) while invoking the provisions of section 263 has not considered that the prerequisite conditions to invoke the said section i.e. the order should be "erroneous" insofar as "it is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be applicable on EDC payment. 4. 20.08.2024 Date of the interim order of the Supreme Court staying the operation of the Delhi High Court order in case of Puri Construction (supra) and other batch matter (Kindly refer S.No.12, of the case law paper book.) The Hon'ble Supreme Court has stayed the operations of the Delhi High Court in a number of batch matters filed taking the case of "Natureville Promoters Private" as the lead case, which was also part of the batch of Puri Construction group of cases. Its writ number i.e. 11232/2019 is also mentioned in the order of Puri Construction. Thus, the matter has not yet become final and is yet to be settled by the Supreme Court. 9. Ld. AR for the assessee further submitted in the writte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision of section 263 cannot be considered to be final. 5.5 It is a trite law that the CIT cannot impose his view on the view taken by the AO, when the AO has formed a specific view after issuing notices and after considering the reply of the assessee under consideration (Reliance is placed on the case laws enclosed as S.No. 8 and 9 of the case laws paper bock). 5.6 It is a trite law where two view arc possible and the AO has taken one of the possible views under consideration, provisions of 263 are not applicable. It is an admitted fact that in this case, the issue under consideration was debatable and hence there were divergent views of Delhi High Court first in the case of BPTP and then in the case of Puri Construction. 5.7 There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of section 194C on 13.02.2024. By relying on the said decision, ld. PCIT has initiated the proceedings u/s 263 of the Act. This development on the subject of payment of EDC was not available with the AO at the time of passing the assessment order. The recent development forced the ld. PCIT to revise the assessment order treating the same as against the law as erroneous as well as prejudicial to the interest of Revenue. After considering the submissions of both the sides, we observed that the issue under consideration is already pending before ld. CIT(A) and the issue under consideration is not settled considering the fact that Hon'ble Supreme Court has stayed the operation of Hon'ble Delhi High Court decision in the case of Puri Construc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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