Assessee company engaged in business of real estate developed a residential complex at Bangalore and sold one apartment to  a non-resident which was later on agreed to be sold back to assessee. Assessing Officer held that buyer was a non-resident hence the  assessee was liable to deduct tax on capital gains arising from payment made to him and levied the interest. CIT (A) confirmed the addition.  On appeal the Tribunal held that  he was unaware of residential status of buyer could not be accepted as he was associated with assessee for a long time. As per section 195, it was not relevant whether non-resident payee had reported income in ITR or he did not have positive income in assessment year under consideration. Payment in question was chargeable to tax and assessee having made payment was bound to deduct tax at source on payment made to non-resident. On facts  the  assessee having failed to deduct tax under section 195, charging of interest under section 201(1A) was  upheld. (AY. 2011-12)