đź’Ľ Sold Property for â‚ą94L but Lost â‚ą21L TDS? ITAT Delhi Steps In
đź’Ľ Sold Property for â‚ą94L but Lost â‚ą21L TDS? ITAT Delhi Steps In
A striking case before ITAT Delhi highlights how procedural errors by buyers can severely impact sellers—and how the law is evolving to correct it.
🔍 What Happened:
• Property sold for ₹94 lakh
• Buyer deducted ~₹21 lakh TDS but deposited it in the wrong assessment year
• Seller denied TDS credit despite correctly reporting capital gains
• Relief granted after filing Form 71
⚖️ What ITAT Held:
• Seller cannot be penalized for buyer’s mistake
• If income is correctly declared, TDS credit must follow
• Form 71 acts as a corrective legal mechanism
đź“Ś Legal Insight:
This ruling reinforces a critical principle:
➡️ Substance over procedural error in tax administration
➡️ Tax authorities must ensure no unjust enrichment at taxpayer’s cost
đź’ˇ Practical Takeaway:
• Always verify TDS reflection in Form 26AS / AIS
• Use Form 71 within 2 years to correct mismatches
• Buyer-side errors can have major consequences—due diligence is key
