Interest under section 201 & 201(1A) for short deduction of TDS on immovable property sold by a non-resident

Facts:

Assessees were joint purchasers of an immovable  property wherein they deducted TDS @ 1% on the consideration. The seller was a non-resident which was known only subsequently that too upon he filing his return of income and the AO raising demand raised for interest on short deduction of TDS by the Assessees. CIT(A) upheld views of the AO. On higher appeal by the Assessees -

Held in the favour of the assessee that since they were not aware; nor the seller disclosed the fact of he being a non-resident and also the fact that revenue has not sustained any loss no interest was leviable under section 201 and 201(1A).

Case: Ajay Dudeja v. ITO 2023 TaxPub(DT) 6826 (Del-Trib)