NITESH KUMAR GANESHPRASAD ASATI,DELHI vs. TDS, INCOME TAX OFFICE

ITA 3005/DEL/2026Status: DisposedITAT Delhi07 September 2026AY 2024-20257 pages
AI SummaryAllowed

What were the facts?

The assessee purchased property and deducted TDS at 1% as per Section 194IA. However, the seller's PAN was inoperative, leading to a demand for higher TDS. The assessee later obtained Form 26A confirming the seller offered the income and paid taxes.

What did the Tribunal hold?

The Tribunal held that the assessee fulfilled the conditions under the first proviso to Section 201(1) as the deductee had offered the income and discharged the tax liability. Therefore, the assessee cannot be treated as an assessee in default.

What were the issues?

Whether the assessee can be held as an assessee in default for short deduction of TDS due to an inoperative seller PAN, when the seller has subsequently regularized their PAN and offered the income for taxation.

Which sections of the Income-tax Act were involved?

Section 194IA,Section 201(1),Section 206AA,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Shri Vinesh Kumar Maheshwari, C.A
For Respondent: Shri Bhogendra Prasad, Sr. D.R
Hearing: 19.08.2026Pronounced: 07.09.2026

PER NAVEEN CHANDRA [ACCOUNTANT MEMBER]:

The above-captioned appeal is preferred by the assessee against the order dated 22.01.2026, passed by the Learned Commissioner of Income Tax (Appeals), Addl./JCIT(A), Panaji (hereinafter referred to as ‘ld. CIT(A)’) under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), arising out of the rectification order dated 31.07.2025 passed by the DCIT, TDS, Ghaziabad for A.Y. 2024-25. 2. The ground of appeals raised by the assessee are as under:

“1. The assessee acted in full compliance with Section 194IA by deducting and depositing TDS at 1% of the sale consideration, using the sellers' valid PAN as declared by the seller at the time of transact

The order continues below.

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