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TDS deductible on Excess amount paid on Cacellation of Flat Purchase Agreement
Case Law Details
- Case Name
- The Income Tax Officer (TDS) Vs M/s Beacon Projects P Ltd (ITAT Cochin)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13 & 13-14
- Courts
- All ITAT, ITAT Cochin
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CA Sandeep Kanoi
Facts of the case-
There was a non-deduction of tax from payments made to certain customers debited in direct expenses under the head “excess payment refund” which was treated as indirect expenses by the assessee. It was submitted by the assessee before the lower authorities that some payments were received by the assessee from customers and who were initially booked the flat by making advance payment plus 1 or 2 installments; but due to various reasons the customers could not fulfill the payment schedule and they requested for refund. After certain period, the assessee id...
above ITAT judgement is already set aside by Kerala High court (IT APPEAL NOS. 258 & 259 OF 2014 on order dated 23-06-15) and held that additional amount Paid to purchaser on cancellation of flat is not interest under section 2(28A) hence No TDS u/s 194A.
Sir, is any SLP filed by the assessee against this order with the High Court? Interest per se has to be a fixed rate on the principal, how can this cancellation premium partake the character of interest. In my view it should be capital receipt. Is there any judgement stating such?