TDS under Section 194B remanded for fresh examination of prize winners' identity and transaction-wise threshold verification

ITAT Cochin remanded TDS matter under Section 194B back to CIT(A) for fresh adjudication. The appellate authority had failed to examine the identity and genuineness of prize winners and whether the prescribed threshold was crossed in each transaction on a transaction-wise basis. The tribunal found that proper factual verification was required before determining the applicability of TDS provisions, necessitating a comprehensive re-examination of the case.

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The Appellate Tribunal (ITAT Cochin) heard Revenue appeals challenging the CIT(A)'s order dated 05.03.2025, which granted relief to the assessee against TDS demands under Section 194B of the Income-tax Act, 1961. The Assessing Officer had treated the assessee as an assessee-in-default under Sections 201(1) and 201(1A), raising a demand of Rs. 2,32,65,540/- for failure to deduct tax on lottery winnings.The Revenue contended that the CIT(A) erred by not verifying the identity and genuineness of prize winners and by failing to examine if each transaction exceeded the TDS threshold under Section 194B. The Tribunal found that the CIT(A) did not properly consider these factual and legal aspects.Accordingly, the Tribunal held that "a proper factual verification is required" and remanded the matter to the CIT(A) for fresh adjudication after affording the assessee a reasonable opportunity of being heard. Both appeals (ITA Nos. 314 and 315/Coch/2025) were allowed for statistical purposes, with the decision in ITA No. 314/Coch/2025 applying mutatis mutandis to ITA No. 315/Coch/2025.Order pronounced on 13.06.2025.

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