SANDIPAN RAY,SINGAPORE V. ACIT, INTERNATIONAL TAXATION

ITA 428/CTK/2025

AI Insights

The case revolves around an appeal by Mr. Sandipan Ray against the order of the CIT(A), Kolkata-22, concerning the assessment year 2018-2019. The primary issue was the addition of Rs.16,11,000/- to the assessee's income, which represented the interest/premium from a buy-back agreement with M/s. Vatika Limited for a flat purchase. The assessee argued that he had not received this amount and thus had not offered it to tax, nor claimed the TDS credit on it. The Assessing Officer (AO) had assumed that the assessee had received the entire premium/interest, leading to the addition of this amount to his income. The Tribunal, after reviewing the submissions and evidence, including email correspondence from M/s. Vatika Limited, concluded that the assessee was correct in not offering the unreceived amount to tax.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839823 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 04-08-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJIB BANERJEE
• Assessee Lawyers: DINESH GOCHHAYAT
• Keywords: TDS

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.428/CTK/2025 (नििाारण वर्ा / Assessment Year : 2018-2019) Mr. Sandipan Ray, Flat No.8, Nirmala Plaza-B, Apartment, Forest Park, Bhubaneswar, Odisha Vs The ACIT (International Taxation), Bhubaneswar PAN No. :AGQPR 0161 B (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Dinesh Gochhayat, CA राजस्व की ओर से /Revenue by : Shri Sanjib Banerjee, Sr. DR सुनवाई की तारीख / Date of Hearing : 24/02/2026 घोषणा की तारीख/Date of Pronouncement : 24/02/2026 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld.CIT(A), Kolkata-22, dated 16.01.2025 for the assessment year 2018- 2019. 2. It was submitted by the ld. AR that the only issues in the asseessee’s appeal was in regard to an addition of Rs.16,11,000/- representing the interest in respect of buy-back of a flat purchased by the assessee from M/s.Vatika Ltd. It was the submission that the assessee had purchased a flat for a consideration of Rs.38,11,000/- from M/s. Vatika Limited. Under the buy-back agreement with M/s. Vatika Ltd, the assessee was to receive the entire principal amount of Rs.38,11,000/- and interest under the name of premium of Rs.26,00,000/-. Thus, the total consideration receivable by the assessee form the M/s.Vatika Limited was Rs.64,11,000/-. It was the submission that M/s. Vatika Limited had paid the assessee an amount of Printed from counselvise.com ITA No.428/CTK/2025 2 Rs.48,00,000/- resulting in payment on account of interest of Rs.9,89,000/- However, M/s Vatika Ltd. had deducted TDS to an extent of Rs.2,60,000/- on the entire interest amount of Rs.26,00,000/-. As the assessee had not received the amount of Rs.16,11,000/-, the assessee had not offered the said amount to tax. The Ld. AR drew our attention to the email correspondence of M/s Vatika Ltd. with the assessee, which reads as follows:- Printed from counselvise.com ITA No.428/CTK/2025 3 3. It was submission that as per the email from M/s Vatika Ltd. the initial payment was against the principal and the final payment was to be made against the interest/premium. It was the submission that as the entire interest/premium has not been received by the assessee, the assessee had offered only such interest/premium which has been received and the balance of Rs.16,11,000/- had not been offered to tax. It was further submission that the assessee has also not claimed the credit of TDS on the said premium in its return of income. It was the submission that the AO accepted the fact that the M/s Vatika Ltd. was to pay back to the assessee total amount of Rs.64,11,000/-. The AO has also accepted that the assessee has received Rs.48,00,000/-. It was the further submissions that the AO took the stand that the assessee had not offered the difference of Rs.16,11,000/- to tax. The assumption drawn by the AO was that the Printed from counselvise.com ITA No.428/CTK/2025 4 assessee has received the entire premium/interest accepted by the M/s Vatika Limited and the amount of Rs.16,11,000/- represented part of the principal which was due to the assessee. It was submitted by the Ld.AR that the assessee has filed its dispute before the Consumer Forum and the matter is pending for resolution. It was the submission that what is due from the M/s. Vatika Limited was the part of the premium/interest portion and not the principal. It was the prayer that the assessee is an individual and the premium/interest would be offered to tax when the same is received by the assessee and the assessee is yet to receive the premium/interest of Rs.16,11,000/-. It was the prayer that the addition as made by the AO and as confirmed by the Ld.CIT(A) may be deleted. 4. In reply, the Ld.Sr DR submitted that the assessee has not provided all the details before the AO. 5. We have considered the rival submissions. A perusal of the page No.12 of the order of the Ld.CIT(A) clearly shows that all the documents had been submitted by the assessee and remand proceedings had also been done before the AO. The assessee, admittedly, is an individual. The email of M/s Vatika Limited to the assessee clearly shows that initially the principal would be repaid and then the interest. There is no reason to come to the conclusion that what has been received by the assessee is entirely of the premium/interest amount. There is no document also which gives such suggestion. The fact also remains that the assessee has not claimed the credit of TDS in respect of the premium/interest. This clearly shows that the assessee has not recognized that the entire interest has been received. Printed from counselvise.com ITA No.428/CTK/2025 5 A perusal of the order AO also does not show that the AO has permitted the adjustment of the TDS in respect of the premium/interest, insofar as the TDS is liable to be adjusted only when the income is offered to tax. This being so, the addition as made by the AO and as confirmed by the Ld.CIT(A) of Rs.16,11,000/- stands deleted. 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 24/02/2026. Sd/- (MADHUSUDAN SAWDIA) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 24/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant - 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "