This judgement has been passed by Hon’ble Jodhpur ITAT in case of Reetu Devi Nanecha Vs. The ITO, TDS, Bhilwara 118/Jodh/2021 Dt. 24.03.2023
This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre, Delhi (for short ‘’NFAC’’), Delhi dated 20-10-2021 for the assessment year 2015-16 raising therein following grounds of appeal.
‘’1. “The impugned Demands of Rs.31,500 u/s 201(1) and Rs.16,380 u/s 201(1A) are bad in law and on facts of the case, for want of jurisdiction and hence the same kindly be deleted.
2. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.”
2.1 At the outset of the hearing, the ld. Counsel for the assessee submitted that there was a transaction of purchase of immovable property on 3-09-2014 for a consideration of 1.20 crores and the same was carried out by four persons. In the 1/4th share of the property, the consideration comes to Rs. 31.50 lacs in the hands of the assessee. The provisions of Section 194IA of the Act are applicable if the consideration is more than Rs. 50.00 lacs and therefore, the assessee should not have been treated as assessee in default u/s 201(1) and 201(1A) of the Act.
2.2 During the course of hearing, the Ld. AR of the assessee prayed to quash the order of the Ld. CIT(A).
2.3 On the other hand, the ld. DR vehemently supported the orders of the lower authorities.
2.4 We have heard the rival contentions and perused the materials placed on record. We notice that the assessee is an individual and as per facts of the case narrated before us and not disputed by the revenue authority, find that the assessee alongwith 3 other persons purchased an immovable property for a consideration of Rs. 1.20 crores on 03-09-2014. The assessee paid 1/4th share of sale consideration i.e. Rs. 31.50 lacs. The AO treated the assessee in default applying the provisions of section 194IA of the Act by considering the purchase cost of Rs. 1.26 crores. We notice that the provisions of Section 194IA of the Act are applicable where consideration for transfer of an immovable property is more than Rs. 50 lacs. Since in the instant case, the consideration paid by the assessee is Rs. 31.50 lacs, therefore, the provisions of Section 194IA of the Act cannot be invoked. Thus, we fail to find any merit in the findings of the Ld CIT(A) and the same is set aside and the demand raised by the AO u/s 201(1) for non-deduction of Tax Rs. 31,500/- and interest levied u/s 201(1A) at Rs. 16,380/- is deleted.
The effective issued in Ground No 1 as raised by the assessee is allowed.
3. The Ground No 2 of the assessee is general in nature which does not require any adjudication.
4. In the result, the appeal of the assessee is allowed.
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There have been similar judgements by various ITAT which are as under:
(1) Vinod Soni vs. ITO & Ors. [ITA No.2736/Del/2015]
(2) Oxcia Enterprises (P.) Ltd. v. Deputy CIT  109 taxmann.com 19 (Jodhpur – Trib.)
(3) Smt. Sandhya Gugalia v. Deputy CIT [ITAT Jaipur Bench in ITA No.77 & 78/JP/2018]
Although it is quite clear now that if the value of property for a buyer is less than 50 lakh he is not required to deduct any TDS, however still there is confusion as sub register many a times reports full value of property in one buyer under SFT or what to do if there are 2 seller, 1 buyer and value of Property is 75 lakh?
Do we have to see TDS only from the point of view of buyer?
There are some questions which needs to be answered.
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