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2018 (8) TMI 678 - ITAT VISAKHAPATNAMTDS liability u/s 195 - transfer of immovable property by the non-residents to resident - all the three non-residents have filed their return of income in India for the relevant assessment year declaring nil capital gains from the transfer of immovable property to the assessee - Held that:- In respect of the nonresidents, the deduction of tax at source is more stringent since the person who receives the payment would be leaving the country and the recovery of tax is impossible or remotely possible. There is a clear distinction between the residents and the non residents. That is the reason why section 195(2) allows the assessee to furnish non deduction certificate and the Board has come up with instruction No.2/2014. Proviso to Section 201 also allows exceptions on sums paid to residents in different situations not to treat the assessee default for the principal amount in the specific situations whereas the said concessions are not extended to the nonresidents. AO has rightly held the as assessee in default for non deduction of tax at source u/s 201(1) of the Act - Decided against the assessee. Since the assessees have filed the returns of income, the assessments must be completed u/s 143(3) or have been accepted u/s 143(1) and determined the tax liability. Therefore, we direct the AO/ITO international Taxation to treat the assessee in default to the extent of actual tax liability instead of estimation. Accordingly, the appeal of the assessee is partly allowed.
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