Gawar Narnaul Highway Ltd vs. DCIT

Parties Involved

Facts Summary

The appeal in ITA No.1859/Del/2024 for AY 2022-23 arises from the order of the Commissioner of Income Tax (Appeals) New Delhi. The assessee, Gawar Narnaul Highway Ltd, had raised 28 grounds before the tribunal, but only the ground regarding the wrong denial of TDS credit under section 199 of the Act read with Rule 37BA of the Income Tax Rules was pressed. The assessee is engaged in the construction of roads and highways on Hybrid Annuity Mode (HAM). The National Highway Authority of India (NHAI) invited proposals for the development, maintenance, and management of certain highways in Haryana. Gawar Construction Limited (GCL) was selected as the successful bidder and incorporated Gawar Narnaul Highway Private Limited (GNHPL) to undertake the project. The assessee recognized its income from construction projects using the Percentage of Completion Method (POCM) and offered income to tax accordingly. However, the payments were made by NHAI on a deferred basis, resulting in the assessee offering more income to tax than the receipts from NHAI.…

Legal Issues

• 1. Denial of TDS credit as claimed in the return.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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