No Proportionate TDS Share on Joint Property Sale If the Entire TDS Has Been Deposited in One’s PAN | Mumbai ITAT

Case Details: Rahul Dinesh Bajpai vs. Deputy Director of Income-tax - [2024] 169 taxmann.com 456 (Mumbai-Trib.)

Judiciary and Counsel Details

• Saktijit Dey, Vice President & Amarjit Singh, Accountant Member
• Ms Soniya Bhatiya for the Appellant.
• R.R. Makwana for the Respondent.

Facts of the Case

During the year under consideration, the assessee and his wife sold an immovable property jointly owned by them. The assessee and his wife offered the capital gain arising from such sale in equal proportion. However, since the TDS on sale consideration was deposited in the name of the assessee alone, in the return of income filed for the assessment year under dispute, the assessee claimed the entire TDS.

While processing the return of income filed by the assessee, the Centralized Processing Centre (CPC) granted credit for TDS in proportion to the capital gain income declared by the assessee. It disallowed the claim for the balance of TDS.

On appeal, the CIT(A) upheld the order passed by the CPC. Aggrieved by the order, an appeal was filed with the Mumbai Tribunal.

ITAT Held

The Tribunal held that it was undisputed that the entire TDS on the sale consideration was remitted to the Government account in the assessee’s name. This fact was clearly evident from Form No. 26AS and the corresponding TDS certificate. Accordingly, the assessee claimed credit for the entire TDS. However, in the return of income for the assessee’s wife, no TDS was claimed. The aforesaid factual position remains uncontroverted.

The sole reason for disallowing the assessee’s claim regarding TDS credit cannot be that the property was jointly owned by him and his wife, and the capital gain from its sale was equally shared by the joint owners. Furthermore, when the assessee claimed that his wife had not claimed credit for TDS, this additional information should have been considered.

Accordingly, the Assessing Officer was directed to factually verify whether the assessee’s wife claimed any part of the TDS. In case the assessee’s claim that his wife did not claim any part of the TDS is correct, the assessee should be allowed the entire TDS credit.