Jerambhai Ratnabhai Patel Vs Central Processing Unit (ITAT Ahmedabad)
ITAT Ahmedabad Denies TDS Credit to Non-Signatory Co-owner: Credit Belongs to Actual Owners Named in Sale Deed
The Ahmedabad Bench “D” of the ITAT dismissed the assessee’s appeal for AY 2022-23, upholding denial of TDS credit of ₹9.82 lakh claimed by the assessee in respect of sale of immovable property. Although the assessee had declared capital gains based on an unregistered family arrangement claiming rights over the ground and first floors, the Tribunal noted that the registered sale deed and agreement for sale named only the assessee’s wife and son as owners and parties to the transaction.
The ITAT held that TDS credit under section 199 read with Rule 37BA can be granted only to the person in whose name the tax has been deducted and who is a party to the sale. Since the assessee was neither a signatory nor an owner under the registered documents, he was not entitled to claim the TDS credit or consequential refund (beyond the already granted ₹11,960). The Tribunal, however, directed the Revenue to allow the TDS credit in the hands of the wife and son after due verification, permitting them to seek appropriate relief, including revision/condonation under section 119(2)(b), if required. Accordingly, the appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
