Bela Rohit Shah Vs ACIT (ITAT Mumbai)
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal filed by the assessee and directed deletion of the demand raised under Section 200A of the Income-tax Act, 1961, towards alleged short deduction of tax, interest, and levy. The Tribunal held that the demand was unsustainable in law in the facts of the case.
The assessee had jointly purchased a residential flat situated at Tardeo, Mumbai, along with her husband through a registered sale deed dated 9 December 2024. The total consideration for the property was ₹1.90 crore. The assessee held a 15% ownership share in the property, resulting in a consideration amount of ₹28.50 lakh attributable to her share, while the remaining 85% share belonged to her husband. The consideration, stamp duty, registration charges, and other incidental expenses were apportioned between the co-owners according to their respective ownership interests.
In compliance with Section 194-IA, the assessee deducted tax at source amounting to ₹28,500 on 9 December 2024 and deposited the same through Form 26QB. Subsequently, an intimation under Section 200A dated 2 April 2025 was issued raising a demand of ₹5,82,290 on account of alleged short deduction of tax, interest, and late filing levy. The basis for the demand was that the seller’s Permanent Account Number (PAN) was allegedly inoperative, thereby attracting deduction of tax at a higher rate under Section 206AA of the Act.
