Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, JSC v. M/S MAHAGUN (INDIA) PVT. LTD

Delhi High Court · 09 Feb 2026 · 2026:DHC:1083-DB
HON'BLE MR. JUSTICE DINESH MEHTA; HON'BLE MR. JUSTICE VINOD KUMAR
2026:DHC:1083-DB
tax appeal_dismissed Significant

AI Summary

The Delhi High Court dismissed the appeals of the Income Tax Department, upholding the Tribunal's decision that TDS on annual lease rent payments to development authorities is required prospectively as per established precedent.

Full Text
Translation output
ITA 259/2025, ITA 418/2025 & ITA 420/2025
HIGH COURT OF DELHI
Date of Decision: 9th February, 2026.
ITA 259/2025
COMMISSIONER OF INCOME TAX (TDS)-1, NEW DELHI.....Appellant
Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, JSC.
VERSUS
M/S MAHAGUN (INDIA) PVT. LTD. .....Respondent
Through: Mr. Somil Agarwal and Mr. Dushyant Agarwal, Advs.
ITA 418/2025 & CM APPL. 58098/2025
PR. COMMISSIONER OF INCOME TAX -TDS-1 .....Appellant
Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC.
VERSUS
MAHAGUN (INDIA) PVT. LTD. .....Respondent
ITA 420/2025 & CM APPL. 58171/2025
PR. COMMISSIONER OF INCOME TAX -TDS-1 .....Appellant
Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC.
VERSUS
MAHAGUN REAL ESTATE PRIVATE LIMITED .....Respondent
CORAM:
HON'BLE MR. JUSTICE DINESH MEHTA
HON'BLE MR. JUSTICE VINOD KUMAR
JUDGMENT
DINESH MEHTA, J.
(Oral)

1. The present appeals i.e. ITA 259/2025 and ITA 418/2025, ITA 420/2025 challenge the orders dated 15.12.2023 and 04.09.2024 respectively passed by the Income Tax Appellate Tribunal Delhi Bench ‘E’ Delhi (hereinafter referred to as “the Tribunal”), whereby the appeals of the respondent-assessee has been allowed in light of the judgment rendered by this Court in the case of Rajesh Projects (India) (p.) Limited v. Commissioner of Income-tax reported in (TDS)-II [2017] 78 taxmann.com 263 (Delhi).

2. Learned counsel for the appellant could not point out any substantial difference between the facts in the present case and the facts which were involved in the case of Rajesh Projects (supra). In the case of Rajesh Projects (supra) this Court held that TDS is required to be deducted from the payment of annual lease rent paid to Greater Noida Development Authority. The same was however, held to be prospective from the date of judgment.

3. The aforesaid judgment has also been affirmed by Hon’ble the Supreme Court vide its judgment dated 02.07.2018 rendered in the case of New Okhla Industrial Development Authority v. Commissioner of Incometax reported in [2018] 95 taxmann.com 80 (SC).

4. In view of the above legal position, all the three appeals are hereby rejected.

5. The issue which is involved in the present case remains undecided by this judgment, and the same shall remain open for subsequent relief.

6. All appeals stand disposed of with all pending applications.

DINESH MEHTA (JUDGE)

VINOD KUMAR (JUDGE) FEBRUARY 9, 2026