Tds & gain related query

CA.AZAD JAIN (CA) (201 Points)

07 January 2019  

Assessee sold a piece of Land Say for Rs. 5500000/- to ‘X’ & documents were 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) failed to pay the Purchase Consideration & as per  mutual consent of both the Parties, applied to Court for Cancellation of deed in September 2018. The matter is still Sub judice in the Court.

Kindly let us know:- 

(a) Whether Assessee should consider the Gain/Profit in his I.T. Return for A.Y. 2018-19?

 (b) Who will claim Refund of TDS?

(c)  Auditor”s Resposibility?