TDS paid without purchase of property

[Deepak Bubna]

Hello,

When a sale deed was not executed yet the potential buyer paid TDS on entire consideration of the agreement, the onus to prove that sale did not take place shall lie on the department or the assessee ? The assessee has made every possible document available to prove that sale did not take place. This transaction was not reported in SFT either as required u/s 258BA of the Act. Since the seller is non-cooperative and has not even returned the amount paid as advance, confirmation from the seller is hard to obtain.

 

Thanks

AI Summary

Property Buyer Challenges TDS Payment Without Sale Deed, Shifts Burden of Proof to Tax Department A potential property buyer paid TDS without executing a sale deed and seeks clarification on burden of proof. The reply indicates that when substantial documentary evidence demonstrates the sale did not occur, the tax department bears the onus to prove otherwise. TDS payment alone does not confirm property transfer, and non-reporting in statutory forms, along with lack of seller cooperation, supports the buyer's claim of no transaction completion.