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Facts
The assessee claimed TDS credit of Rs. 23,92,000/- for income from capital gains arising from the sale of a residential plot in FY 2018-19. The sale deed was executed on 20.06.2018 for Rs. 3,95,00,000/-, with a balance of Rs. 2,00,00,000/- to be paid subsequently.
Held
The Tribunal held that once the income is assessed in an earlier assessment year, the corresponding TDS benefit deducted subsequently should not be denied. The assessing authority was directed to consider the TDS claim as per law.
Key Issues
Whether the TDS credit related to income assessed in a prior year can be denied in the current assessment year?
Sections Cited
143(1), 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2023-24 Prem Gandhi, Vs JAO-Income Tax Officer, C-2/14, Safdarjung Development Ward-29(1), Area, New Delhi-110021 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AQKPG1541N Assessee by: Sh. Deepak Ostwal, CA & Sh. Rishabh Ostwal, Adv. Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 27.08.2025 Date of Pronouncement: 27.08.2025 ORDER This assessee’s appeal for Assessment Year 2023-24, arises against the Addl./JCIT(A)-3, Chennai’s DIN & order No. ITBA/APL/S/250/2024-25/1074499213(1) dated 14.03.2025, in proceedings u/s 143(1) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities’ action denying TDS credit benefit of Rs.23,92,000/- pertaining to these income arising from capital gains derived from sale/transfer of residential plot to a developer way back in the financial year 2018-19. it is made clear that the sale/transfer deed to the developer who executed by the assessee alongwith his brother Sh. Yogesh Gandhi dated 20.06.2018 already forms part of record wherein he had actually received a sum of Rs.3,95,00,000/- and balance of Rs.2,00,00,000/- was to be paid subsequently. There is no dispute at this amount of Rs.2,00,00,000/- has been actually received by the assessee in A.Y. 2023-24 in question.
It is in this factual backdrop that the assessee claimed his TDS credit of the entire income which was disclosed in the year of agreement i.e. A.Y. 2019-20 which has been denied in the impugned assessment year. The Revenue could hardly dispute in this factual backdrop that going by the matching principle, once the assessee already stands assessed for the very income in the earlier assessment year, the corresponding TDS benefit deducted subsequently could hardly be denied. Learned assessing authority is accordingly directed to ensure that his consequential computation shall duly considered, the assessee’s foregoing TDS claim as per law.
No other grounds or argument has been pressed.