Delayed allotment or plot/land to buyers - Whether interest subject to TDS under Section 194A

Facts :

Assessee a real estate player had to pay some amounts to its customers for delayed handing over of plot/flats etc. These payments were held to be as interest and thus assessee was held to be in default for non-deduction of TDS under Section 201. On appeal to ITAT-

Held in favour of the assessee that there was no indebtedness which had risen warranting these payments. Hence the same cannot be termed as interest. Assessee was not in default for non-deduction of TDs.

Applied :

PCIT v. West Bengal Housing Infrastructure Development Corporation (2018) 413 ITR 82 (Calcutta) : 2018 TaxPub(DT) 5846 (Cal-HC)

Delhi Development Authority v. ITO (1995) 53 ITD 19 (Del) : 1995 TaxPub(DT) 0985 (Del-Trib)

Case : Sawhney Builders (P) Ltd. v. ACIT 2023 TaxPub(DT) 2405 (Del-Trib)