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Facts
The assessee and his wife jointly sold an immovable property for Rs.1,18,00,000/-. The TDS on the sale consideration was deposited in the assessee's name. The assessee claimed the entire TDS, while his wife claimed none.
Held
The Tribunal held that simply because the property was jointly owned and capital gains were shared, it cannot be the sole reason to disallow the entire TDS credit to the assessee, especially when the wife has not claimed the TDS.
Key Issues
Whether the assessee is entitled to claim the entire TDS credit when the property was jointly owned and the TDS was deposited in his name alone.
Sections Cited
Section 194IA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
(Assessment Year: 2023-24) Rahul Dinesh Bajpai Dy. Director of Income Tax House No. 6, Plot No. 60, CPC, Bengaluru-560 100 Krishnakunj Building, Vs. Karnataka N S Road No. 6, Vileparle West, Juhu, Mumbai-400 091 PAN/GIR No. ACGPB 8660 FIS (Appellant) : (Respondent) Appellant by : Ms. Soniya Bhatiya Respondent by : Shri R. R. Makwana Date of Hearing : 21.11.2024 Date of Pronouncement : 27.11.2024 O R D E R Per Saktijit Dey, VP: This is an appeal by the assessee, against the order dated 09.03.2024 by the learned first appellate authority for the assessment year (A.Y.) 2023-24.
The short issue arising for consideration in this appeal is non grant of full TDS credit, claimed in the return of income.
Briefly, the facts are, during the year under consideration, the assessee and his wife sold an immovable property jointly owned by them for a total consideration of Rs.1,18,00,000/-. The capital gain arising out of such sale was offered in equal proportion both by the assessee and his wife. However, since the TDS on sale consideration was deposited in the name of the assessee alone, in the return of income filed for the assessment year under dispute, the assessee claimed the entire TDS. While processing the return of income filed by the assessee, the Centralized Processing Centre (CPC) granted credit for TDS in proportion to the capital gain income declared by the assessee and disallowed the claim for the balance TDS. appeal before the first appellate authority, however, he was unsuccessful.
We have heard the parties and perused the materials on record. Undisputedly, the entire TDS on the sale consideration was remitted to the Government account in the name of the assessee. This fact is clearly evident from Form No. 26AS and the corresponding TDS certificate. Accordingly, the assessee claimed credit of entire TDS.
Whereas, in the return of income of assessee’s wife, no TDS was claimed. The aforesaid factual position remains uncontroverted before us. Merely because the property was jointly owned by the assessee and his wife and the capital gain arising on sale of property was equally shared by the joint owners, that cannot be the sole reason for disallowing assessee’s claim in respect of TDS credit. More so, when it is the assertion of the assessee that his wife has not claimed credit for TDS.
In view of the aforesaid, we direct the A.O. to factually verify, whether assessee’s wife has claimed any part of the TDS and in case, assessee’s claim that his wife has not claimed any part of the TDS is found to be correct, entire TDS credit should be allowed to the assessee.
In the result, the appeal is allowed in terms indicated above.
Order pronounced in the open court on 27.11.2024 Sd/- Sd/- (Amarjit Singh) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 27.11.2024 Roshani, Sr. PS (A.Y. 2023-24) Rahul Dinesh Bajpai vs. Dy. Director of Income Tax Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER,