ITAT says EDC TDS Liability Depends on Payee Tax Compliance

DLF Homes Panchkula was held liable for non-deduction of TDS under Section 194C on ₹39.72 crore of EDC paid to HUDA. ITAT Delhi, without deciding the underlying Section 194C controversy, followed Deputy Gothwal Constructionand directed the Assessing Officer to verify whether HUDA had accounted for the receipts and paid tax - in which event the demand under Sections 201(1) and 201(1A) could not survive.