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आयकरअपीलीयअिधकरण इंदौर(cid:586)ायपीठ इंदौर

IN THE INCOME TAX APPELLATE TRIBUNAL

INDORE BENCH, INDORE

BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER

AND

SHRI PARESH M JOSHI, JUDICIAL MEMBER

ITA No.477/ Ind/ 2025

(AY: 2015-16)

Directorate of Urban बनाम/ Deputy

Administrations & Development, Vs. Commissioner of

Nagar Palika Bhawan, 6 No.Bus Income Tax-TDS,

Stop, R.S.Market, Bhopal

S.O. Huzur, Bhopal(M.P.)

(TAN: BPLDO1618B)

(Appellant) (Respondent)

Assessee by Shri Sapan Usrethe, Adv. &

Ms. Apoorva Garg, CA

Revenue by Shri Anup Singh, CIT DR

Date of Hearing 21.01.2026

Date of Pronouncement 30.01.2026

आदेश / O R D E R

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of

the income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this Tribunal as & by way of

second appeal. The Assessee is aggrieved by the order bearing

Number:-ITBA/ APL/ S/ 250/ 2024-25/ 1074816130(1) dated

21.03.2025 passed by the Ld. CIT(A) u/ s 250 of the Act,

which is herein after referred to as the “Impugned order”.

Page 1 of 12

Directorate of Urban Administration & Development

ITA No. 477/Ind/2025 - A.Y.2015-16

The relevant assessment year is 2015-16 and the

corresponding previous year period is from 01.04.2014 to

31.03.2015.

2. Factual Matrix

2.1 That as and by way of an “ Default order” passed u/ s

201(1) & 201(1A) of the Act by the DCIT(TDS), Bhopal

dated 28.12.2021, the assessee was found & deemed to be

an Assessee in Default for Short deduction of Tax of

Rs. 2,98,992/ - u/ s 201(1) of the Act-for AY 2015-16 & as per

provision of section 201(1A), the assessee was held liable to

pay simple interest at the rate of one percent per month on

the amount of Default for AY 2015-16 which was calculated at

Rs. 2,60,123/ -. [CEPT University Ahmedabad] It was also

found out in the order that for AY 2015-16, the assessee-

deductor has made short deduction on payment made to

1. Spatial Decisions, 2. Prem Choudhary, 3. K.N. Gutgutia

& Co. at Rs. 81431/ - u/ s 201(1) of the Act. The interest was

worked out at Rs. 71,531/ - u/ s 201(1A) on said amount. For

non-deduction of TDS on interest payment to HUDCO for the

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Directorate of Urban Administration & Development

ITA No. 477/Ind/2025 - A.Y.2015-16

period prior to 20.03.20219 [194A] short deduction was

worked out at Rs. 3,42,61,000/ - u/ s 201(1A) and interest

thereon was worked out at Rs. 3,18,61,000/ - u/ s 201(1A)

For the payment made to “ CEPT University” the TDS was

found to be deducted at 4% [194J] instead of 10%. The TDS

Certificate downloaded from TRACES (Certificate No. III

5DE160H) it was also found that it is valid from 24.11.2014

to 31.03.2015. However, on 26Q of 3rd Quarter the assessee

deductor had paid Rs. 48,62,400/ - on 01.10.2014. Therefore

lower TDS Certificate (supra) issued to the CEPT University

is valid from 24.11.2014 to 31.03.2015 & not applicable on

payment made before 24.11.2014 (payment made on

01.10.2014. TDS was deducted at 4% instead of 10% [194J].

The Assessee was in Default u/ s 201(1) at Rs. 2,98,992/ - &

u/ s 201(1A) at Rs. 2,60,123/ -. The total amount of Default

for (supra) Non-Deduction of TDS/ irregularity was worked

out at Rs. 6,68,33,877 [u/ s 201(1) & 201(1A)]. The aforesaid

default order dated 28.12.2021 is herein after referred to as

the “Impugned Default Order”

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Directorate of Urban Administration & Development

ITA No. 477/Ind/2025 - A.Y.2015-16

2.2 The Assessee is Directorate of Urban Administrations

Development, Bhopal which is Dept. of State Government of

M.P. & is looking after all the administrative work carried out

by various statutory bodies like Nagar Parishad, Nagar Nigam

& Nagar Panchayats of M.P. It also carries out development of

infrastructure, give guarantees Grants etc.

2.3 That the assessee being Aggrieved by the aforesaid

“Impugned Default Order” prefers the first appeal u/ s 246A

of the Act before the Ld. CIT(A) who by the “Impugned Order”

has dismissed the 1^st appeal of the Assessee on the grounds &

reasons stated