IN THE ITAT, DELHI 'F' BENCH

B.R.R. KUMAR, A.M. & YOGESH KUMAR US, J.M.

Regards Developers (P.) Ltd. v. Addl. CIT

IT Appeal No. 6535 (Delhi) of 2019

A.Y. 2017-18

30 November, 2022

Respondent by: Sanjay Nargas, Sr. D.R.

B.R.R. Kumar, A.M.

The present appeal has been filed by the assessee against the order of learned Commissioner (Appeals)-31, New Delhi dated 28-6-2019.

2. Following grounds have been raised by the assessee :--

'1. That the learned Commissioner (Appeals) has grossly erred both in law and on facts in sustaining a penalty of a sum of Rs. 61,38,000, on account of non-deduction of tax on payments being made for External Development Charges (EDC) paid/payable to HUDA and while sustaining the instant penalty, the learned Commissioner (Appeals) has proceeded on irrelevant and extraneous considerations, relying on case laws not applicable to the facts of the case of assessee-appellant and as such the penalty so sustained is wholly untenable either on facts or in law.

1.1 That the learned Commissioner (Appeals) has failed to appreciate the fact that payment of EDC by assessee-appellant is to the State Government and that too for creation of fund which is to be utilized by the said government for urban development and creation of infrastructure and there is no requirement to deduct TDS on said payments under section 196 of the Act and as such, penalty so imposed needs to be deleted.

1.2 That the adverse findings recorded by the learned assessing officer and Commissioner (Appeals) are perverse and have been recorded with preconceived notions and without considering the submissions/evidences/material produced on record and also without providing fair and proper opportunity of being heard, hence such findings are vitiated and deserves to be deleted.