Resident-firm which buys house property from NRI cannot escape consequences of non-deduction of TDS u/s 195 from payments to NRI-vendor by claiming that long-term capital gains from sale of house property by NRI are tax-exempt under Chapter-XIIA contrary to the provisions of section 115E especially when NRI himself offered the amount as taxable in his income-tax return and paid tax thereon

New Vistas Constructions, Hyderabad v. Income Tax Officer-II (International Taxation), Hyderabad  (Hyderabad – Trib.)