Simmi Gupta Vs DCIT/ACIT (TDS) (ITAT Chandigarh)
The Chandigarh Bench of the Income Tax Appellate Tribunal examined an appeal against an order confirming liability under sections 201(1) and 201(1A) of the Income Tax Act, 1961 for alleged failure to deduct tax at source on purchase of immovable property under section 194-IA. The case arose from information received during a search conducted in another group, based on which the Assessing Officer alleged that the assessee had jointly purchased a flat and made part of the consideration in cash without deducting TDS. Show cause proceedings were initiated on the basis of statements of employees of the builder, who allegedly confirmed receipt of cash.
The Assessing Officer treated the assessee as an “assessee in default” on the ground that cash payments were made for the property and TDS was not deducted, and levied interest accordingly. The first appellate authority upheld this view. Before the Tribunal, the assessee denied having made any cash payment and argued that the entire action was based solely on third-party statements, without any corroborative evidence. It was further pointed out that no proceedings were initiated under sections 148 or 153C to assess any undisclosed cash payment in the hands of the assessee.
