ITAT Softens TDS Default on Inoperative PAN

The Income Tax Appellate Tribunal (ITAT), Delhi Bench, partly allowed the appeal against a demand raised under Section 200A for short deduction of tax under Section 194-IA. 

That Section 206AA read with Rule 114AAA(3) ordinarily mandates deduction of tax at 20% where the deductee's PAN is inoperative due to non-linking with Aadhaar, the Tribunal held that equity demanded verification of whether the seller had already disclosed the property transaction and paid the due taxes.