IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘F’ NEW DELHI)

BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3706/Del/2025 (A.Y. 2012-13)

Celebrity Realcon (P) Ltd. Vs ITO

10, new Rajdhani Enclave, Ward 49(3), Delhi Vikas Marg, Delhi-110092 PAN: AADCC8384M Appellant Respondent Assessee by Sh. Amit Goel, Adv, Shri Pranav Yadav, Adv Revenue by Ms.Harpreet Kaur Hansra, Sr. DR Date of Hearing 16/10/2025 Date of Pronouncement 30/10/2025 ORDER PER YOGESH KUMAR, U.S. JM:

The above captioned Appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)-41, New Delhi (Ld. CIT(A)’ for short), dated 20/02/2017 for the Assessment Year 2012-

13.

2. Brief facts of the case are that, the Assessee is a real estate developer during Financial Year 2011-12, the Assessee made payment of lease rental to NOIDA Authority without deducting the TDS on the payment of lease rental. An order u/s 201(1)/201(1A) of the Income Tax Act, 1961 ('Act' for short) came to be passed on 28/03/2014 by treating the appellant herein as ‘Assessee in default’ and ordered to pay the tax along with interest. Aggrieved by the order dated

28/03/2014, the Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 20/02/2017, dismissed the Appeal filed by the Assessee. As against the order of the Ld. CIT(A) dated

20/02/2017, Assessee preferred the present Appeal.

3. The Ld. Counsel for the Assessee submitted that the Assessee paid a total lease rental of Rs. 42,67,989/- to NOIDA authorities without deducting the TDS @ 10% i.e. 4,26,798/- u/s 194IA of the Act as the NOIDA Authority has not accepted the payment after TDS deduction as the said Authority claimed to be exempted and TDS need not be deducted.

4. Further submitted that, the issue as to whether the TDS to be deducted for the payment made to NOIDA Authority went up to Hon'ble Supreme Court in the case of M/s New Okhla Industrial Development Authority, Greater Noida Industrial Development Authority vs. Commissioner of Income Tax Appeals &ors. The Hon'ble Supreme Court upheld the Judgment of Hon'ble High Court of Delhi reported in 2017 (2) TMI 1109- Delhi High Court in the case of Rajesh Projects (India) Pvt. Ltd., and ors. Vs. Commissioner of Income Tax (TDS)-2 and ors., wherein the Hon'ble High Court gave prospective effect for application of provision of Section 194-I of the Act from 16/02/2017. Further submitted that as the subject payment has been made in F.Y 2012-13, applying the ratio laid down by the Hon'ble High Court and the Hon'ble Supreme Court, sought for allowing the present Appeal.

5. Per contra, the Ld. Department's Representative relying on the order of the lower authorities sought for dismissal of the Appeal.

6. We have heard both the parties and perused the material available on record. The issue as to whether the deduction of tax at source under Section 194-I of the Act should be made or not while making the payment to NOIDA Authority, has been dealt by the Hon'ble High Court of Delhi in the case Rajesh Projects (India) reported in 2017(2) TMI-1109. Wherein it is held that the payment made up to the date of the Judgment i.e. 16/02/2017, requires no deduction of TDS from the end of the payee to the NOIDA authority and only after 16/02/2017, the payment made to the authority shall be subject to TDS. The relevant portion of the Judgment of Hon'ble High Court in the case Rajesh Projects (India) (supra) is reproduced as under:-

“19. So far as the other issue, pertaining to TDS in respect of interest payments received by GNOIDA is concerned, the provision in question is Section 194A of the Income Tax Act. It reads as follows:

194A. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee or at the