9911796707
TMI Blog2025 (3) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... rejudice that could be caused to the interest of the revenue in the instant case. The order passed by the Learned AO is prejudicial to the interest of the assessee and the revision order passed by the CIT is prejudicial to the interest of the revenue.
Hence the mandatory twin conditions for initiation of revision proceedings u/s 263 does not get satisfied in the instant case and respectfully following the decisions in the case of Malabar Industrial Co [2000 (2) TMI 10 - SUPREME COURT] and Max India Ltd [2007 (11) TMI 12 - SUPREME COURT] we have no hesitation to quash the revision order passed by CIT u/s 263 of the Act. Accordingly, the grounds raised by the assessee are allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed under section 263 of the Act, viz., (i) that the assessment order is erroneous; and (ii) that the assessment order is prejudicial to the interest of Revenue, which are to be cumulatively satisfied. 3. That having regard to the facts and circumstances of the case and in law, the CIT(TDS) erred in exercising the revisionary jurisdiction under section 263 of the Act by not appreciating that External Development Charges (EDC) were paid consequent to license granted by DTCP, Government of Haryana and there was no contractual obligation between the assessee and HUDA and thus, the assessee was not liable to deduct TDS on such payments. 4. That having regard to the facts and circumstances of the case and in law, the CIT(TDS) erred in exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from DCIT, TDS circle, Panchkula, vide letter dated 9- 3-2017, which revealed that there was a TDS survey action conducted under section 133A of the Act at the business premises of Haryana Urban Development Authority( HUDA) now Haryana Shahari Vikas Pradhikaran (HSVP) on 9-2-2017, wherein it was found that External Development Charges (EDC) were received by HUDA from private builders without deducting tax at source on it. EDC was received for use of urban development infrastructure known as External Development Work done by HUDA on its own land. Since EDC has the character of income, the same should have been subjected to deduction of tax at source by the private builders. 4. Proceedings under Section 201(1) and 201(1A) of the Act stood in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Delhi High Court rejected the contentions of the revenue with regard to payment of EDC charges for application of provisions of section 194I of the Act and held that the same would fall within the ambit of provisions of Section 194C of the Act. The Court held that EDC Payments carried out is civil in nature for providing amenities and hence EDC payments made by the Builders to HUDA would be covered under service contract, thereby liable to TDS as per provisions of section 194C of the Act @ 2%. 6. Based on the said order of Hon'ble Jurisdictional High Court, the Learned CIT, TDS -1, New Delhi sough to revise the order framed under section 201(1) and 201(1A) of the Act dated 29-3-2022 treating the same as erroneous and prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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