Section 194C, 271C of Income Tax Act, 1961— In the instant case, AO has levied penalty u/s 271C for Rs. 7,96,000/-; and Rs. 7,16,000/- respectively, on the ground that assessee has not deducted TDS from EDC paid to HUDA u/s 194C of the Act. The said order has been confirmed by the Ld. CIT (A).

The assessee submitted that since payments of EDC is made to the DTCP, which is nothing but payment to the Government of Haryana, in view of the provisions of section 196 of the Act, tax is not required to be deducted at source.

Held that— we find that under the facts and circumstances it is clearly borne out that assessee did had bonafide reason for not deducting the TDS. Firstly, for the reason that the license was granted by DTCP which is a Governing authority and it has clarified that EDC charges are paid to HUDA; and secondly, DTCP has issued a clarification to the effect that no TDS is required to be deducted precisely.

we hold that no penalty is leviable u/s 271C and same is directed to be deleted.[M/S. SARV ESTATE PVT. LTD. CENTRAL WING, GF, THAPAR HOUSE, 124, JANPATH, NEW DELHI VERSUS JCIT, RANGE 77, NEW DELHI.] [2019] 17 ITCD Online (10) [ITAT DELHI]

TD.) VERSUS DCIT, CENTRAL CIRCLE-32, NEW DELHI.] [2019] 17 ITCD Online (9) [ITAT DELHI]