Parag Keshav Boparrdika Vs ITO & Ors. (Delhi High Court)
Delhi High Court has ruled in favor of Parag Keshav Bopardikar, a Non-Resident Indian (NRI), directing the Income Tax Department to grant him full Tax Deducted at Source (TDS) credit, despite an error by the buyers of his property in filing the incorrect TDS form. The court’s decision, issued on May 27, 2025, emphasizes that a bona fide error by the deductor should not prejudice the payee’s right to claim deposited tax credit.
Mr. Bopardikar, a tax resident of the USA, sold a residential property in Pune for ₹2.00 Crores in September 2015. The buyers deducted ₹18,68,177 as TDS, which was duly deposited with the government. However, the buyers erroneously filed Form 26QB, which is applicable for resident Indians, instead of Form 27Q, meant for NRIs. Mr. Bopardikar subsequently filed his Income Tax Return (ITR) for the relevant period, claiming the TDS credit.
The dispute arose when the Assessing Officer (AO) initiated reassessment proceedings in March 2023, believing income had escaped assessment. While Mr. Bopardikar provided details of the sale and tax discharge, the AO proceeded with a notice under Section 148 of the Income Tax Act, 1961. Upon realizing the Form 26QB/27Q mismatch, Mr. Bopardikar’s buyers attempted to correct the challan.
