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2024 Supreme(Online)(DEL) 9592
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* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 15 January 2024 Judgment pronounced on: 13 February 2024 + W.P.(C) 9483/2019 & CM APPL 39041/2019 PURI CONSTRUCTIONS PRIVATE LIMITED ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh & Mr. Chetan Kumar, Advs. versus ADDITIONAL COMMISSIONER OF INCOME TAX & ORS. .... Respondents Through: Mr. Aseem Chawla, SSC with Ms. Pratishtha Chaudhary, Mr. Aditya Gupta & Mr. Navin Rohila, Advs.
+ W.P.(C) 11232/2019 & CM APPL. 46219/2019 NATUREVILLE PROMOTERS PRIVATE LIMITED ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC. + W.P.(C) 3850/2021 RPS INFRASTRUCTURE LIMITED ..... Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor & Mr. Soniya Dodeja, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-78, TDS-02 ..... Respondent Through: Mr. Sanjay Kumar, Ms. Easha &
Ms. Hemlata Rawat, Advs.
+ W.P.(C) 4909/2023 M/S RAMPRASTHA ESTATES PVT. LTD ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Ms. Bakshi Vinita, SPC for R-1/
UOI.
+ W.P.(C) 4097/2021 & CM APPLs. 21620/2021, 21621/2021 NOVA REALTORS PVT LTD ..... Petitioner Through: Mr. Satyen Sethi & Mr. Arta Trana Panda, Advs.
versus INCOME TAX OFFICER ..... Respondent Through: Mr. Sanjay Kumar, Ms. Easha &
Ms. Hemlata Rawat, Advs.
+ W.P.(C) 4281/2021 & CM APPL. 47286/2021 M/S ALPHA CORP DEVELOPMENT PVT LTD ..... Petitioner Through: Mr. Debesh Panda & Mr.
Kanishk Aggrawal, Advs.
versus ASSISTANT COMMISISONER OF INCOME TAX & ANR. ..... Respondents Through: Mr. Puneet Rai, Mr. Ashvini Kumar, Mr. Rishabh Nangia, Advs. for Income Tax.
Mr. Hemant Gupta, Ms. Shivang Jain & Ms. Swati Tiwari, Advs.
for R-2.
+ W.P.(C) 11552/2021 & CM APPL. 35649/2021 M/S VIPUL SEZ DEVELOPERS PVT. LTD. ..... Petitioner Through: Mr. Sumit K. Batra, Mr. Manish Khurana, Ms. Priyanka Jindal, Advs. versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Asheesh Jain, CGSC with Mr. Gaurav Jain, Adv. for R-1. Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 4778/2021 & CM APPLs. 14735/2021, 22303/2021 M/S ALPHA CORP DEVELOPMENT PVT. LTD. ..... Petitioner Through: Mr. Debesh Panda & Mr.
Kanishk Aggrawal, Advs.
versus INCOME TAX OFFICER & ANR. ..... Respondent Through: Mr. Puneet Rai, Mr. Ashvini Kumar, Mr. Rishabh Nangia, Advs. for Income Tax.
Mr. Hemant Gupta, Ms. Shivang Jain & Ms. Swati Tiwari, Advs.
for R-2.
+ W.P.(C) 5319/2021 & CM APPL. 16386/2021 COUNTRYWIDE PROMOTERS PVT. LTD. ..... Petitioner Through: Mr. Piyush Kaushik, Adv.
versus COMMISSIONER OF INCOME TAX (TDS)-1, DELHI &
ANR. ..... Respondents Through: Mr. Puneet Rai, Mr. Ashvini Kumar, Mr. Rishabh Nangia, Advs. for Income Tax.
+ W.P.(C) 5683/2021 & CM APPL. 17766/2021 M/S RAMPRASTHA ESTATES PVT. LTD. ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Ravi Prakash, CGSC with Ms. Usha Jamnal, Adv. for Resp./UOI.
Mr. Sunil Agarwal, Sr. SC with Mr. Shivansh Pandya, Mr.
Utkarsh Tiwari, Advs.
+ W.P.(C) 5715/2021 & CM APPL. 17894/2021 M/S FLORENTINE ESTATES OF INDIA LTD. ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Ravi Prakash, CGSC with Ms. Usha Jamnal, Adv. for Resp./UOI.
Mr. Sunil Agarwal, Sr. SC with Mr. Shivansh Pandya, Mr.
Utkarsh Tiwari, Advs.
+ W.P.(C) 11531/2021 & CM APPL. 35542/2021 M/S VIPUL SEZ DEVELOPERS PVT. LTD. ..... Petitioner Through: Mr. Sumit Batra, Mr. Manish Khurana, Ms. Priyanka Jindal, Advs. versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Asheesh Jain, CGSC with Mr. Gaurav Jain, Adv. for R-1. Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 299/2022 & CM APPL. 848/2022 RAHEJA DEVELOPERS LIMITED ..... Petitioner Through: Mr. Pratyush Raj & Ms. Riddhi Jain, Advs.
versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 78(1) DELHI AND ORS. ..... Respondents Through: Ms. Akanksha Kaul, Ms. Versha Singh, Advs. for UOI.
Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 4033/2022 & CM APPL. 12047/2022 RAHEJA DEVELOPERS LIMITED ..... Petitioner Through: Mr. Pratyush Raj & Ms. Riddhi Jain, Advs.
versus ASSISTANT COMMISSIONER OF INCOME TAX & ORS. ..... Respondents Through: Ms. Akanksha Kaul, Ms. Versha Singh, Advs. for UOI.
Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 4498/2022 & CM APPL. 13457-13458/2022 BENCHMARK INFOTECH PVT LTD ..... Petitioner Through: Mr. Satyen Sethi & Mr. Arta Trana Panda, Advs.
versus INCOME TAX OFFICER TDS WARD73(3) ..... Respondent Through: Mr. Puneet Rai, Mr. Ashvini Kumar, Mr. Rishabh Nangia, Advs. for Income Tax.
+ W.P.(C) 4554/2022 & CM APPL. 13664-13665/2022 RPS INFRASTRUCTURE LIMITED ..... Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor & Mr. Soniya Dodeja, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-
78-1 & ANR. ..... Respondents Through: Mr. Sanjay Kumar, Ms. Easha &
Ms. Hemlata Rawat, Advs.
+ W.P.(C) 4647/2022 & CM APPL. 13960/2022 RPS INFRASTRUCTURE LIMITED ..... Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor & Mr. Soniya Dodeja, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 78-1 & ANR. ..... Respondents Through: Mr. Sanjay Kumar, Ms. Easha &
Ms. Hemlata Rawat, Advs.
+ W.P.(C) 5365/2022 & CM APPL. 16059/2022 ONE POINT REALITY PVT LTD ..... Petitioner Through: Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr. Utkarsh Kumar Gupta, Mr. Tarun Chanana &
Mr. Sumit Lalchandani, Advs.
versus INCOME TAX OFFICER, WARD
76(2) & ANR. ..... Respondents Through: Mr. Kamal Kant Jha, Sr. PC with Mr. Avinash Singh, Adv. for UOI.
Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 5367/2022 & CM APPL. 16062/2022 ONE HEIGHT COLONIZERS PVT. LTD. ..... Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor & Ms. Soniya Dodeja, Advs. versus INCOME TAX OFFICER, WARD
76(2) & ANR. ..... Respondents Through: Mr. Sanjay Kumar, Ms. Easha &
Ms. Hemlata Rawat, Advs.
+ W.P.(C) 6552/2022 & CM APPL. 19907-19908/2022 JAGRAN DEVELOPERS PVT. LTD. ..... Petitioner Through: Ms. Ananya Kapoor & Mr.
Utkarsh Kumar Gupta, Advs.
versus NATIONAL FACELESS ASSESSMENT CENTRE ..... Respondent Through: None + W.P.(C) 6558/2022 & CM APPL. 19924-19925/2022 JAGRAN DEVELOPERS PVT. LTD. ..... Petitioner Through: Ms. Ananya Kapoor & Mr.
Utkarsh Kumar Gupta, Advs.
versus NATIONAL FACELESS ASSESSMENT CENTRE ..... Respondent Through: None + W.P.(C) 6631/2022 & CM APPL. 20143-20144/2022 ANSAL PROPERTIES AND INFRASTRUCTURE LTD ..... Petitioner Through: Mr. Tapas Ram Mishra, Adv.
versus DY COMMISSIONER OF INCOME TAX CIRCLE 73(1) ..... Respondent Through: Mr. Aseem Chawla, Sr. SC with Ms. Pratishtha Chaudhary, Mr. Aditya Gupta, Mr. Navin Rohila, Advs. for Revenue.
+ W.P.(C) 6694/2022 & CM APPL. 20332-20333/2022 M/S FLORENTINE ESTATES OF INDIA LTD. ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Ravi Prakash, CGSC with Ms. Usha Jamnal, Adv. for Resp./UOI.
Mr. Sunil Agarwal, Sr. SC with Mr. Shivansh Pandya, Mr.
Utkarsh Tiwari, Advs.
+ W.P.(C) 6737/2022 & CM APPL. 20450-20451/2022 ACTIVE PROMOTERS PRIVATE LIMITED ..... Petitioner Through: Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr. Utkarsh Kumar Gupta, Mr. Tarun Chanana &
Mr. Sumit Lalchandani, Advs.
versus INCOME TAX OFFICER WARD
73(1), DELHI ..... Respondent Through: Mr. Aseem Chawla, Sr. SC with Ms. Pratishtha Chaudhary, Mr. Aditya Gupta, Mr. Navin Rohila, Advs. for Revenue.
+ W.P.(C) 6893/2022 & CM APPL. 21015/2022 M/S OMAXE LTD ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus DEPUTY COMMISSIONER OF INCOME TAX & ORS. ..... Respondents Through: Mr. Vipul Agrawal, SSC with Mr. Gibran Naushad & Ms. Sakshi Shairwal, Adv. for R- 1 &
R-3.
+ W.P.(C) 7978/2022 & CM APPLs. 24381/2022, 36849/2022 RAHEJA DEVELOPERS LIMITED ..... Petitioner Through: Mr. Pratyush Raj & Ms. Riddhi Jain, Advs.
versus ASSISTANT COMMISSIONER OF INCOME TAX & ORS. ..... Respondents Through: Ms. Akanksha Kaul, Ms. Versha Singh, Advs. for UOI.
Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 9236/2022 & CM APPL. 27686/2022 M/S TS REALTECH PVT. LTD ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Gigi C. George & Mr.
Dheeraj Singh, Advs. for Resp./UOI.
Mr. Aseem Chawla, Sr. SC with Ms. Pratishtha Chaudhary, Mr.
Aditya Gupta, Mr. Navin Rohila, Advs. for Revenue.
+ W.P.(C) 11184/2022 & CM APPL. 32877/2022 M/S ONE POINT REALITY PRIVATE LIMITED ..... Petitioner Through: Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr. Utkarsh Kumar Gupta, Mr. Tarun Chanana &
Mr. Sumit Lalchandani, Advs.
versus INCOME TAX OFFICER WARD 76(2), DELHI .. Respondent Through: Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 11220/2022 & CM APPL. 32975/2022 M/S ONE POINT REALITY PRIVATE LIMITED ..... Petitioner Through: Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr. Utkarsh Kumar Gupta, Mr. Tarun Chanana &
Mr. Sumit Lalchandani, Advs.
versus INCOME TAX OFFICER WARD
76(2), DELHI ..... Respondent Through: Mr. Zoheb Hossain, SSC with Mr. Sanjeev Menon, JSC.
+ W.P.(C) 11706/2022 & CM APPL. 34819/2022 (Ex.)
M/S PURI CONSTRUCTION LIMITED ..... Petitioner Through: Mr. Puneet Agarwal, Mr. Yuvraj Singh, Mr. Chetan Kumar, Advs.
versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Bhagwan Swaroop Shukla, CGSC with Mr. Vinay Shukla & Mr. Sharvan Kumar Shukla, Advs. for Resp./UOI.
Mr. Kunal Sharma, Ms. Zehra Khan, SSCs with Mr. Shubhendu Bhattacharyya, Adv.
+ W.P.(C) 4920/2023 & CM APPL. 19028-19029/2023 BRAHMA CITY PRIVATE LIMITED ..... Petitioner Through: Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr. Utkarsh Kumar Gupta, Mr. Tarun Chanana &
Mr. Sumit Lalchandani, Advs.
versus INCOME TAX OFFICER WARD 73 3 DELHI & ANR. ..... Respondents Through: Mr. Puneet Rai, Mr. Ashvini Kumar, Mr. Rishabh Nangia, Advs. for Income Tax Mr. Bhagwan Swaroop Shukla, CGSC with Mr. Vinay Shukla & Mr. Sharvan Kumar Shukla, Advs. for Resp./UOI.
+ W.P.(C) 5313/2023 & CM APPL 20713/2023 CHINTELS INDIA PVT LTD. ..... Petitioner Through: Mr. Kapil Goel & Mr. Sandeep Goel, Advs.
versus DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 73(1), DELHI ..... Respondent Through: Mr. Aseem Chawla, SSC with Ms. Pratishtha Chaudhary, Mr. Aditya Gupta & Mr. Navin Rohila, Advs.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV
J U D G M E N T
YASHWANT VARMA, J.
1. This batch of writ petitions assail the action initiated by the respondents predicated upon a purported failure on the part of the writ petitioners to deduct tax on payments made to the Haryana Shahari Vikas Pradhikaran1 (earlier known as the Haryana Urban Development Authority, for short ―HUDA‖) under Section 194C of the Income Tax Act, 19612. The respondents assert that the External Development Charges3 which were paid by the writ petitioners to HSVP albeit on the directions of the Director General, Department of Town and Country Planning4, Haryana, a department functioning under the Government of Haryana, would clearly fall within the ambit of Section 194C of the Act and as a consequence of default, the petitioners are liable to be proceeded under Section 201 as also to answer why penalty be not levied in terms of Section 271C of the Act.
2. We at the outset deem it appropriate to note and observe that we have heard learned counsels for respective sides solely on the question of whether the payment of EDC would fall within the ambit of Section 194C of the Act and whether the writ petitioners can be held liable to have deducted tax at source in terms of that provision. We thus propose to principally answer the primary question and consequentially leave it open for the writ petitioners as well as the respondents to proceed further in respect of notices that may have been issued referable to
3. Since the questions raised were found to be common, we propose to briefly notice the salient facts as they obtain in W.P.(C) 11232/2019 and W.P.(C) 3850/2021. It may also be noted that the facts of each writ petition forming part of this batch and the status of individual cases has been gleaned from a detailed chart which was placed by the respondents and forms part of the record.
4. Natureville Promoters Private Limited5 has preferred the aforenoted writ petition seeking the following reliefs:-
―(a) Quash and set aside the CIRCULAR F. NO. 370133/37/2017 -
TPL Dated 23.12.2017 (Annexure -12);
(b) Quash and set aside the Notices issued under Section 201(1)/ Section 201(1A) of the Income Tax Act dated 22.03.2017, 31.03.2017, 10.08.2017 and 19.07.2019 [(Annexure 3, 4, 8 ( colly)
and 16 ( colly)].
(c) Quash and set aside the provisions of Section 4(1), and Section 2(31)(vi) being violative of the Article 289 of the Constitution of India imposing tax on income of State;
(d) Declare that the EDC is not leviable to Income tax, and there is no liability to deduct TDS on the same under the Income Tax Act, 1961;
(e) Prohibit and restrain the respondents from proceeding further with the matter;
Pass such other order(s) or further orders as this Hon'ble Court deems fit and proper in the facts and circumstances of the case, for which act of kindness the Petitioner as is duty bound shall ever pray.‖
5. It must at the outset be noted that although a challenge to the validity of Sections 4(1), Section 2(31)(vi) of the Act also appears to form part of the writ petition, no arguments on that score were
―A. Issuance of writ in the nature of Certiorari, Mandamus, Prohibition or any other appropriate writ, order or direction for quashing the impugned show cause notice dated 12.03.2021 issued by the Respondent being illegal, arbitrary and not legally sustainable in the eyes of law;
B. Issuance of a writ, order and/or directions in the nature of certiorari, prohibition, mandamus or any other appropriate writ, order or direction staying the operation of the impugned show cause notice dated 12.03.2021 issued by the Respondent.
C. Issuance of a writ, order and/or directions in the nature of certiorari, prohibition, mandamus or any other appropriate writ, order or dire
