2026 (4) TMI 1788

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....vini Kumar and Mr. Rishabh Nangia, JSCs. For the Respondent Through: None. ORDER 1. By way of the present appeal, the Income Tax Department has challenged the order dated 28.08.2025 passed by the Income Tax Appellate Tribunal, Delhi 'A' Bench (ITAT) (hereinafter referred to as 'the Tribunal) for the Assessment Year 2020-21. 2. The substantial question of law proposed by the Department ....

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....unt was deducted from the payment received by the respondent-Bank in relation to the auction/sale of the property as per the scheme of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act'). 5. He submitted that since the amount was deducted from the sale consideration, unless the Bank showed the correspon....

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....ent order. We find that Section 194IA of the Act of 1961 is the correct provision under which the tax could have been deducted, as the tax was deducted at the time of and from the proceeds of sale of an immovable property. 10. When the tax is deducted in relation to the amount paid/received qua purchase/sale of the property, then one has to bear in mind the nature of transaction. 11. In case....

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....sold by the Bank, it is only a trustee or custodian of the sale proceeds and any excess amount received in relation to the property over and above its outstanding dues and expenses incidental to the auction, has to be returned to the borrower. Similarly, in case there is any deficit, the Bank can recover the same from the borrower in accordance with law. 13. The property does not belong to the ....