2026 (6) TMI 808

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.... 2025-26, whereby demand on account of alleged short deduction of TDS, interest and levy has been sustained. 2. Briefly stated, the facts borne out from the record are that the assessee, Mrs. Bela Rohit Shah, had jointly purchased a residential flat being Flat No.14, 1st Floor, Dev Chhaya, Tardeo, Haji Ali, Mumbai jointly with her husband Shri Rohit Jaykumar Shah from Shri Jaydev Harish Raja. As per the registered Sale Deed dated 09.12.2024, the total consideration for acquisition of the said property was Rs. 1,90,00,000/-. The assessee held 15% share in the said property and accordingly her share of consideration amounted to Rs. 28,50,000/-, whereas the balance 85% share belonged to her husband. The sale deed was duly registered before ....

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....erative at the time of transaction and even the Departmental portal had accepted the PAN while processing Form 26QB without raising any objection whatsoever. The assessee had also separately paid interest on delayed deposit of TDS and late filing levy and therefore there was complete and substantial compliance with the statutory requirements. 5. The learned counsel submitted that the very foundation on which the impugned demand has been raised under section 200A proceeds on an erroneous assumption that provisions of section 206AA stood automatically attracted merely because PAN was allegedly shown as inoperative at some stage. It was pointed out that the seller had already linked Aadhaar with PAN and had regularized the PAN status within....

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....paper book. The undisputed factual position emerging from the record is that the assessee had purchased only 15% share in the subject property and had duly deducted tax under section 194IA at the prescribed rate on the consideration attributable to her share. The tax so deducted was also deposited through Form 26QB. The sole basis on which the impugned demand under section 200A has been raised is that PAN of the seller was allegedly inoperative and therefore higher rate of deduction under section 206AA was applicable. However, from the material placed before us, it is evident that the seller had subsequently linked his Aadhaar with PAN and the PAN stood regularized within the time contemplated under CBDT Circular No.9/2025 dated 21.07.2025.....