Section 40, 194C of income Tax Act, 1961— Non deduction of TDS—The present appeal is being filed by the Revenue on the ground that the assessee has not deducted the TDS while making the payment to the agencies – Bhagyashree Developer, Jaaji Developer and Jaaji Promoters who have developed the residential complex for the employees.

The CIT(A) relying upon the decision of the jurisdictional High Court in the matter of Karnataka State Judicial Department Employees House Building Co-operative Society Ltd., has decided the issue of the assessee and against the Revenue wherein it was held that—

When the assessee is only a purchaser, if any advance sale consideration is paid, the assessee has no business to deduct the tax at source as it is for the seller of the sites to pay the capital gains depending upon the tax payable by him.[INCOME TAX OFFICER, TDS WARD-3 (3) , BANGALORE VERSUS M/S. THE COFFEE BOARD EMPLOYEES CO-OP HOUSING SOCIETY LIMITED] [2018] [7] [ITCD Online] [33] [ITAT BANGALORE]