2025 (3) TMI 43

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..... on this issue. We therefore hold that the explanation that the issue of TDS being deducted on EDC payment was not having legal clarity and there was a difference of opinion on this issue which needed clarification from the CBDT, is a valid explanation. No evidence on record that payment of EDC charges is non-genuine or that the assessment order has demonstrated that there is any concealment of income or there is any inaccurate particulars of the income. Mere noncompliance with the TDS provisions do not imply concealment or furnishing of inaccurate particulars to encompass the assessee with the mischief of section 271(1)(c)/270A.We are of the considered view that by making an incorrect claim in law, would not tantamount to furnishing of .....

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..... he assessee to HUDA. The AO in the assessment order initiated penalty proceedings u/s 271(1)(c) and 270A for the respective AYs 2016-17 and 2017-18. In absence of any explanation coming forth from the assessee, the AO levied penalty u/s 271(1)(c ) and 270A for the respective AYs. 4. The aggrieved assessee approached the CIT(A) who deleted the penalty for both the years. The Revenue is now aggrieved and is before us. 5. The ld DR heavily relied upon the order of the Assessing Officer and vehemently argued that the assessee has committed a violation of TDS provisions u/s 194Cand has offered no explanation, and hence the penalty should be sustained. The Learned DR further argued that Hon'ble Delhi High Court has upheld the decision on TDS be .....

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..... he material available on the record. We find that the learned CIT(A) vide his order dated 07.03.2024 has deleted the penalty under Section 271(1)(c) for AY 2016-17and penalty under Section 270A of the Act for AY 2017-18. 9. We find that the assessee has made payment on account of EDC charges to HUDA and has not deducted TDS. During assessment years 2016-17 and 2017-18,the issue of deduction of TDS on EDC payment made to Real Estates Developers including HUDA needed a clarification. There was confusion with regard to whether HUDA was a state government body or an independent taxable entity. These issue were clarified by the Office Memorandum dated 23rd December 2017 issued by the TPL Division of the CBDT. Further, the issue was under legal .....

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