ITAT Delhi Remands TDS Demand Case Due to Inoperative PAN & Lack of System Alerts

Sanchit Gupta Vs DCIT (ITAT Delhi) The ITAT Delhi restored to the Assessing Officer the issue relating to higher TDS demand raised under Section 206AA read with Rule 114AAA(3) due to non-linking of the seller’s PAN with Aadhaar. The assessee had purchased immovable property for Rs.30.60 lakh in August 2023 and deducted TDS at 1% under Section 194IA. However, since the seller’s PAN was inoperative owing to non-linking with Aadhaar, CPC-TDS applied TDS at 20% and raised a demand of Rs.5.87 lakh including interest under Section 200A. The Tribunal observed that statutory provisions required hi...