High Court of Delhi · Judgments and reasoned final orders
Commissioner of Income Tax (TDS)-1, New Delhi v. M/s Mahagun (India) Pvt. Ltd. & Mahagun Real Estate Pvt. Ltd.
ITA 259/2025, ITA 418/2025 & ITA 420/2025 ·
Prospective operation of the ruling in Rajesh Projects (India) (P.) Ltd. v. CIT (TDS)-II [2017] 78 taxmann.com 263 (Del) (as affirmed by the Supreme Court in NOIDA v. CIT [2018] 95 taxmann.com 80 (SC)) requiring deduction of TDS under Section 194-I on annual lease rent paid to Greater Noida Industrial Development Authority (GNIDA).
1. FACTS OF THE CASE
The Revenue filed three appeals (ITA 259/2025, ITA 418/2025, and ITA 420/2025) challenging the ITAT Delhi Bench 'E' orders dated 15.12.2023 and 04.09.2024 allowing the appeals of Mahagun (India) Pvt. Ltd. and Mahagun Real Estate Pvt. Ltd. against Section 201(1)/(1A) demands for non-deduction of TDS on annual lease rent paid to Greater Noida Development Authority.
2. DISCUSSION BY THE COURT
The Division Bench observed that in Rajesh Projects (India) (P.) Ltd. v. CIT (TDS)-II [2017] 78 taxmann.com 263 (Delhi), the High Court held that while TDS is deductible from payments of annual lease rent to Greater Noida Development Authority, the liability was expressly made prospective from the date of that judgment. That decision was affirmed by the Supreme Court on 02.07.2018 in New Okhla Industrial Development Authority v. CIT [2018] 95 taxmann.com 80 (SC). Counsel for the Revenue could point out no factual distinction.
3. JUDICIAL DECISION
Rejecting all three appeals in light of Rajesh Projects and NOIDA v. CIT, the High Court disposed of the appeals and pending applications.
4. OUTCOME
Assessee - All three Revenue appeals (ITA 259/2025, 418/2025 & 420/2025) rejected.
5. AKHB REVIEW POINT
Real estate developers who paid annual lease rent to NOIDA or Greater Noida Development Authority prior to the judgment date in Rajesh Projects (16.02.2017) cannot be treated as assessees-in-default under Section 201(1)/(1A) by virtue of the prospective-application shield.
Source and verification
3-page official High Court of Delhi judgment PDF (DLHC011224962024_1_2026-02-09.pdf, 69,101 bytes).
Original PDF: 3 pages · SHA-256: 2cad7ca6c2ff7906705d3ea9823617e0c2dfed399dc1cef18555db68d14beeb3
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Applies Sections 194-I, 201(1), and 201(1A) of the Income-tax Act, 1961. Income-tax Act, 2025 equivalence is not verified.
Full 3-page primary judgment PDF text read and verified page-by-page. Follows Rajesh Projects (India) (P.) Ltd. v. CIT (TDS)-II [2017] 78 taxmann.com 263 (Del) and New Okhla Industrial Development Authority v. CIT [2018] 95 taxmann.com 80 (SC).
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