आयकर अपीलीय न्यायाधिकरण में , हैदराबाद ‘ए’ बेंच , हैदराबाद IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad , , श्री मंजूनाथ जी माननीय लेखा सदस्य एवं श्री रवीश सूद माननीय न्याययक सदस्य SHRI G. MANJUNATHA, HON’BLE ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER आयकरअपीलसं./I.T.A.No.1284/Hyd/2025 (निर्धारण वर्ा/ Assessment Year: 2016-17)

Kamaluddin Hamed Vs. The Deputy Commissioner of Salmani, Income Tax, Circle 9(1), R/o.Hyderabad. Hyderabad.

PAN : CRAPS1163D (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

करदाता का प्रतततितित्व/ : Shri Surabhi, C.A.

Assessee Represented by राजस्व का प्रतततितित्व/ : Shri Gurpreet Singh, Sr.AR Department Represented by सुिवाई समाप्त होिे की ततति/ : 16.10.2025 Date of Conclusion of Hearing घोर्णध की तधरीख/ : 31.10.2025 Date of Pronouncement

O R D E R

PER MANJUNATHA G., A.M :

This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [in short “NFAC”], Delhi, dated

12.06.2025 relating to the assessment year 2016-17.

2. The brief facts of the case are that, the assessee is an individual and filed his return of income for the assessment year 2016-2017 u/sec.139(1) of the Income Tax Act, [in short “the Act”] 1961 on 05.08.2016 declaring total income of Rs.49,83,339/-. The Assessing Officer has completed the assessment u/sec.143(3) of the Act on 18.12.2018 by accepting the return of income filed by the assessee. As per the Information available with the Department, the assessee has executed sale deed agreement with a GPA holder, Sri Badruddin Hussain Salmani for a consideration of Rs.1,63,25,000/- which is to be adjusted with the loan amount owned by the GPA holder to the assessee. The GPA holder paid a sum of Rs.88,00,000/- and the remaining Rs.75,25,000/- shall be adjusted with development and repairs of the building which is to be made by the vendor. The assessee vendee deducted TDS of Rs.88,000/- u/sec.1941A taking into consideration of amount received by the assessee i.e., Rs.88,00,000/- as the net consideration. The Assessing Officer during the course of re- assessment proceedings noted that, the consideration for the purpose of TDS u/sec.194(1A) shall be on the total amount of Rs.1,63,25,000/- and not Rs.88,00,000/- and that, the TDS shall be deducted @ 1% on Rs.1,63,25,000/- which worked out to Rs.1,63,250/-. Therefore, the Assessing Officer noted that, the differential amount Rs.75,250/- (Rs.1,63,250/- - Rs.88,000/-)

needs to be brought to tax.

2.1. The Assessing Officer noted that, the assessee has sold a land vide sale deed No.8230 dated 27.7.2015 for a consideration of Rs.2,01,85,000/-. The Assessing Officer observed from the sale deeds produced by the assessee that, out of the capital gain of Rs.2,00,35,049/- (total consideration of Rs.2,01,85,000/- cost of acquisition of Rs.1,49,951/-) that arise from the sale of the land mentioned above, only an amount of Rs.38,60,100/- was deposited in the capital gain scheme and the remaining Rs.1,63,25,000/- was not actually utilized for the purpose of purchase or construction of a residential house. The residential house stated to have been purchased by the assessee on 30.06.2016 was not actually purchased out of the capital gain derived by him from the sale of the land. The GPA holder of the house property, Sri Badruddin Hussain Salmani owned loan amount of Rs.1,63,25,000/- to the assessee, which he could not repay. Hence, the assessee has taken the house property into his possession through the sale deed dated 30.03.2016 in lieu of the loan given by him. Hence, the Assessing Officer observed that, the capital gain arrived from the sale of the land was not utilized in full for the purpose of construction of a residential property. The Assessing Officer noted that, out of capital gain of Rs.2,00,35,049/-, the assessee has deposited a sum of Rs.38,60,000/- in the capital gain scheme. Therefore, the Assessing Officer observed that, th