New Delhi, Sept. 5 -- A Delhi taxpayer found herself in an unusual income tax dispute after her tenant deducted tax at source (TDS) from the rent but failed to deposit the amount with the government. Since there were no records of the deduction, the landlord was denied credit for the TDS, prompting her to challenge the decision.

This case concerns Anita Grover, a housewife who had rented out her property to M/s Paramount Coaching Centre Pvt. Ltd. at a monthly rent of Rs.90,000. The tenant deducted TDS at 10% under Section 194-I of the Income-tax Act,1961, amounting to Rs.9,000 per month, and paid her the remaining Rs.81,000.

The landlady filed her income tax return (ITR) for AY 2019-20 on August 7, 2019, in which she declared the gross ...