Sumit Yadav Vs ITO (ITAT Delhi)
Parity Principle Saves Purchaser – ITAT Deletes Short TDS Demand-Same Facts, Same Relief – Father’s Case Accepted, Son’s Cannot Be Denied
Assessee, along with his father Shri Bhupender Singh Yadav, purchased a flat in Gurgaon from an NRI seller, Shri Prashant Singh & Smt. Pooja Singh. At the time of agreement (13.04.2021), ₹5 lakh was paid. Seller obtained a lower deduction certificate u/s 197 on 06.07.2021 at 3%, but it was inadvertently issued only in the father’s name covering entire capital gains of ₹87.50 lakh. Later, on 26.11.2021, a revised certificate was issued splitting equally between father & son, each covering ₹43.75 lakh, with TDS @3% applicable. Assessee deducted & deposited TDS @3% on his share & filed Form 27Q. However, CPC-TDS raised demand of ₹3.54 lakh u/s 154/200A alleging short deduction of TDS. NFAC upheld the demand.
ITAT noted that in father’s case, NFAC had already deleted identical demand (order dated 13.01.2023) holding 3% TDS rate correct, & Revenue had not appealed. On parity of facts, Tribunal held that Assessee cannot be treated differently. Since the lower deduction certificates were valid, TDS compliance was correct & there was no short deduction. Accordingly, ITAT deleted demand of ₹3.54 lakh & allowed Assessee’s appeal.
