M/s. Unitech Acacia Projects Pvt. Ltd. vs. ACIT

Parties Involved

Facts Summary

The appellant, M/s. Unitech Acacia Projects Pvt. Ltd., acquired land from NOIDA and paid lease rent without deducting TDS, based on NOIDA's advice that its income was exempt under section 10(20A) of the Income Tax Act, 1961. The Assessing Officer held the appellant liable to deduct TDS and imposed interest liability under section 201(1A). The appellant appealed, arguing that NOIDA's income was exempt and thus no TDS was required. The Revenue cross-appealed, challenging the exemption claim. Additionally, the appellant in ITA No. 7798/Del/2018 contested the disallowance of interest expenses under section 40(a)(ia) due to late TDS deduction.…

Legal Issues

• 1. Whether the appellant was liable to deduct TDS under section 194-I while making payments to NOIDA, GNOIDA, and YEIDA.
• 2. Whether the interest liability under section 201(1A) was correctly imposed.
• 3. Whether the Revenue's appeal regarding the exemption under section 10(20A) was valid.
• 4. Whether the disallowance of interest expenses under section 40(a)(ia) was correctly imposed.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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