TaxTMI 
TaxTMI 
2025 (11) TMI 919
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.... a Non-Resident and filed the original return of income for AY 2022-23 on 27.07.2022 declaring taxable income of Rs. 4,86,560/- (income from house property Rs. 4,64,444/-, income from other sources Rs. 32,115/- and loss from long term capital gain of Rs. 5,55,123/-) and claimed the prepaid tax of Rs. 21,60,112/- against the total tax payable of Rs. 12,301/-. While processing the return of income credit of TDS was allowed of Rs. 60,872/- against the claim of prepaid taxes of Rs. 21,60,112/- in his return of income by the CPC. The CPC not allowed the credit of TDS of Rs. 20,99,240/- which was deducted/deposited on sale of the immovable property by the buyer of the property. 3. Aggrieved the above order, the assessee preferred an appeal bef....
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.... for AY 2022-23 & 2023-24. On perusal from the Form 26AS for AY 2022-23, it is clearly evident that purchaser has neither deducted nor deposited the said TDS on the sale consideration in AY 2022-23 whereas in Form 26AS for A Y 2023-24, the TDS deducted by the purchaser amounting to Rs. 20,99,2401- is clearly appearing. The appellant in his reply has clearly stated that the amount of TDS deducted by the buyer has been deposited in the financial year 2022- 23 instead of financial year 2021-22. In support of his claim appellant has submitted form 26AS for both the financial year i.e. 2021-22 & 2022-23 and its corresponding TDS of Rs. 20,99,2401- has been reflected in form 26AS for the financial year 2022-23 relevant to assessment year 2023-24 ....
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....ances of the case and in law, the Ld. CIT(A) has erred in confirming the action of Ld. Centralised Processing Center, Bengaluru ('Ld. AO') in not allowing the credit of tax deducted at source ('TDS') of Rs. 20,99,240 in accordance with the provisions of section 199 of the Act even though he duly acknowledged that TDS was deducted by the buyer on the sale value at the time of sale, as evidenced by sale deed, but was deposited in the subsequent year. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) was not justified in confirming the action of Ld. AO in disallowing the credit of TDS in complete disregard of the fact that the Appellant had duly filed application in prescribed Form 71 in acc....
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.... assessee for AY 2023-24 and not for AY 2022-23. He submitted that since the assessee has already declared the relevant income, the AO cannot deny the same. Ld. AR of the assessee further submitted the legal submissions in his written submissions which are reproduced below :- "In the facts of case, the legal submissions are summarized here-in-below: In terms of section 45(1) of the Act, gains/ losses arising on transfer of a capital asset is chargeable to income-tax under the head Capital Gains and is deemed to be income of the previous year in which the transfer took place. The registered Sale Deed confirms that the property was sold on 15.09.2021 i.e. in the previous year 2021-22. Consequently, the Appellant was right in....
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....f the sale deed it is evident that Rs. 20,99,240/- has been deducted by the buyer on the sale value i.e. Rs. 91,75,0001- @ 22.88%. The TDS was deducted by the buyer at the time of the sale, however, the buyer filed TDS returns in the next Assessment year i.e. 2023-2024 instead of A Y 2022-23. On perusal of the Form 26AS it is evident that the TDS deducted by the buyer has been filed in the financial year 2022-23 i.e. on 28,03.2023 instead of financial year 2021- 22, which is verifiable from the copy of form 26AS submitted by the assessee for the financial year 2021-22 & 2022-23." However, the Ld. CIT(A) instead of allowing the credit of TDS to the Appellant due to it under law, inexplicably and incorrectly suggested that the Appell....