Yogesh Gandhi Vs ACIT (ITAT Delhi)
Once Capital Gain Taxed in Earlier Year, Subsequent TDS Must Be Given in Later Year- ITAT Delhi Allows Full TDS Credit:
Assessee, an NRI, had sold a property for ₹2,97,50,000 in FY 2018-19 & offered the entire capital gain in AY 2019-20 after claiming TDS of ₹47,24,200 deducted on ₹1,97,50,000 actually received then. The balance ₹1,00,00,000 was paid later in AY 2023-24, on which the developer deducted TDS of ₹23,92,000. Assessee claimed this TDS in AY 2023-24 since income had already been fully offered in AY 2019-20.
CPC restricted credit to ₹8,69,608 in the 143(1) intimation, & CIT(A) upheld the denial stating that Assessee failed to furnish ITRs of AY 2019-20 & AY 2023-24 before him, making verification impossible.
Tribunal noted that Assessee had already offered the entire sale consideration in AY 2019-20, tax was paid, assessment u/s 143(3) was completed, & Form 26AS for AYs 2019-20 & 2023-24 perfectly matched the receipt & TDS breakup. Tribunal held that income can be taxed only once, & once the full capital gain is assessed in AY 2019-20, TDS deducted at the time of later settlement must be allowed in AY 2023-24. Tribunal found the CIT(A)’s approach incorrect, as all evidences—including sale deed, development agreement, 26AS & confirmations—clearly established the factual position. Tribunal therefore directed AO to allow full TDS credit of ₹23,92,000 in AY 2023-24. The appeal was allowed in full.
