TDS on immovable property purchase consideration was due on the full amount, while other disallowances needed fresh verification.

Tax was required to be deducted on the entire consideration for transfer of immovable property under section 194IA, so non-deduction on the balance amount justified treatment of the assessee as an assessee in default under section 201. The remaining TDS disallowances on provisions and expenses were not finally determined because additional material, including payment details, remittances and Form 16A, required verification; those issues were remitted for de novo examination by the Assessing Officer.

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Issues: (i) whether the assessee was rightly treated as an assessee in default for failure to deduct tax at source on the balance consideration paid for purchase of immovable property; (ii) whether the other TDS disallowances on provisions and expenses required fresh examination by the Assessing Officer.

Issue (i): whether the assessee was rightly treated as an assessee in default for failure to deduct tax at source on the balance consideration paid for purchase of immovable property.

Analysis: The assessee purchased immovable property for the full consideration but deducted tax only on a part of the amount. The explanation that the balance was debited in the profit and loss account was not accepted. On the facts, the obligation to deduct tax under section 194IA arose on the entire consideration for transfer of the property. Non-deduction on the balance amount attracted treatment under section 201.

Conclusion: The assessee was rightly treated as an assessee in default on this issue, and the finding was against the assessee.

Issue (ii): whether the other TDS disallowances on provisions and expenses required fresh examination by the Assessing Officer.

Analysis: The assessee produced additional material, including details of payments, remittances, and Form 16A, and contended that in some cases tax had been deducted and remitted in later years or that the liability had not crystallised. These materials had not been examined fully at the earlier stage. The matter therefore required verification of the documents and a fresh determination on whether tax was deductible and whether the assessee could be treated as an assessee in default.

Conclusion: The issue was remitted to the Assessing Officer for de novo consideration, and the assessee obtained partial relief on this issue.

Final Conclusion: The determination on TDS for purchase of immovable property was sustained, while the remaining TDS-related disallowances were sent back for fresh examination, resulting in a partial success for the assessee.

Ratio Decidendi: Tax was required to be deducted on the entire consideration for transfer of immovable property under section 194IA, whereas disputed TDS liabilities on other items could be re-examined where the record showed unresolved factual questions and additional evidence.

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