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2023 (4) TMI 1045 - AT - Income TaxTDS u/s 194IA - default u/s 201(1) and 201(1A) - assessee alongwith 3 other persons purchased an immovable property for a consideration - HELD THAT - The assessee paid 1/4th share of sale consideration i.e. Rs. 31.50 lacs. We notice that the provisions of Section 194IA 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 and interest levied u/s 201(1A) is deleted. The effective issued in Ground No 1 as raised by the assessee is allowed.
Issues involved: Appeal against order of ld. CIT(A) regarding demands u/s 201(1) and 201(1A) for assessment year 2015-16.
Summary: Issue 1: Demands u/s 201(1) and 201(1A) The appeal was filed against the order of ld. CIT(A) concerning demands u/s 201(1) and 201(1A) for the assessment year 2015-16. The assessee argued that the provisions of Section 194IA of the Act should not be applicable as the consideration paid was below the threshold. The AO treated the assessee as in default based on a higher purchase cost. However, it was found that the consideration paid by the assessee was Rs.31.50 lacs, below the threshold of Rs.50 lacs as per Section 194IA. Consequently, 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/- was deemed unjustified. The Tribunal set aside the findings of the ld. CIT(A) and allowed the appeal on this ground. Issue 2: General Ground The second ground raised by the assessee was of a general nature and did not require any specific adjudication. In conclusion, the appeal of the assessee was allowed, and the demands u/s 201(1) and 201(1A) were deemed invalid. The order was pronounced in the open Court on 24/03/2023.
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