Tax treatment related query.

CA.AZAD JAIN (CA) (201 Points)

10 October 2018  

Assessee sold a piece of Land  for Rs. 5500000/- to ‘X’ & document is registered & executed with sub registar in the month of February 2018.  X deducted tax @ 1% i.e. 55000/- & deposited to Government Treasury.                                                             The ‘X’ (purchaser) fails to pay the Purchase Consideration &  according to  mutual consent Seller applied to Court for Cancellation of deed in September 2018. The matter is still under Sub judice .                                                                           Kindly let us know:-                                                                                                                                                               (a) What is the tax treatment in the hands of Buyer & Seller.                                                                                                  (b) Who will claim refund of TDS?