Raheja Developers Limited v. Assistant Commissioner of Income Tax & Ors.
Case brief
What is this about?
The High Court of Delhi addressed petitions challenging the applicability of TDS under Section 194C on payments of External Development Charges (EDC) made to HSVP. The Court held that HSVP is not the 'Government' under Section 196, making the payments liable to TDS. It ruled that a contract need not be written if discernible from statutory obligations. While penalties were quashed due to bonafide belief in legal uncertainty, interest liability remains. The Court quashed specific penalty orders and allowed writ petitions where EDC was raised without a contract, remanding other cases for fresh consideration.
What did the court decide?
Writ petitions allowed to the extent penalties under Section 271C and final show cause notices under Section 201 are quashed for specific petitions. Liberty granted to revocation proceedings for others. Interest liability under Section 201(1-A) remains; recovery of tax barred if already paid by recipient.