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2023 (7) TMI 1044 - AT - Income TaxDemand u/s 201(1A) - non deduction TDS u/s 194IA - purchase consideration qua assessee is less than or more than Rs. 50 Lakhs - Co-ownership in property - HELD THAT - Assessee as well as the seller of the property were under bonafide and genuine impression that if individual sale price by seller is below Rs. 50,00,000/- in that case no TDS at 1% is deductible under Section 194IA of the Act. As per the sale deed the details of the sellers / transferors of the said property and in fact the sellers individuals share in the said joint property was below Rs. 50,00,000/-, therefore, both seller and purchaser was under bonafide impression that threshold limit for TDS is Rs. 50,00,000/- and no TDS is required to be deducted. The observation of the CIT(A) that the assessee has not filed Form No. 26A alongwith certificate of the Chartered Accountant appears to be correct and thus, the assessee has not fulfilled the condition of Section 201 - In respect of interest liability under Section 201(1A) the said interest was rightly calculated by the Assessing Officer and there is not need to interfere with the same. A.R. submitted that in case of wife of the assessee the CIT(A) has calculated the interest charged under Section 201(1A) at Rs. 7,843/- on the identical facts and therefore, in the present case also the Revenue is directed to calculate the same. Thus, Ground Nos. 1 2 are partly allowed for statistical purpose
Issues involved:
The issues involved in the judgment are related to the calculation of interest charged under Section 201(1A) and the application of Section 194IA regarding TDS deduction on the purchase of immovable property. Issue 1 - Interest Calculation under Section 201(1A): The appeal raised concerns about the interest charged under Section 201(1A) for Rs. 58,306, which the appellant argued was wrongly calculated and ought to be higher. The National Faceless Appeal Centre Delhi upheld the calculation, but the appellant sought a recalculation or restriction until the filing of the IT Return. The appellant's wife's case was cited as a reference where the interest was calculated at Rs. 7,843 on identical facts. The matter was to be remanded back to the Assessing Officer for recalculating in the interest of justice. Issue 2 - Application of Section 194IA on TDS Deduction: The additional grounds of appeal challenged the invocation of Section 201(1) and 201(1A) due to the purchase consideration being less than Rs. 50 lakhs from different sellers. The appellant argued that TDS deduction under Section 194IA was not applicable as the total purchase consideration was below the threshold. The authorities failed to consider a relevant decision cited by the appellant, and the appellant requested its admission in the interest of justice. Judgment Details: The Assessing Officer observed that the assessee failed to deduct TDS on a property purchase for Rs. 1,25,00,001, which was liable for a 1% tax deduction under Section 194IA. The Assessing Officer added Rs. 1,22,972 under Section 201(1) / 201(1A) of the Income Tax Act, 1961. The CIT(A) partially allowed the appeal, considering the appellant's contention regarding the TDS deduction threshold. The Ld. A.R. argued for a higher interest calculation under Section 201(1A) and a reevaluation of the case based on the appellant's wife's situation. The Ld. D.R. supported the CIT(A)'s direction for verifying Form 26A and the necessity of providing relevant documents. The Tribunal noted the bonafide belief of both parties regarding TDS deduction thresholds but upheld the Assessing Officer's interest calculation under Section 201(1A. Grounds 1 & 2 were partly allowed for statistical purposes, with the appellant granted a hearing following principles of natural justice. The appeal was partly allowed for statistical purposes, with the judgment pronounced in Open Court on 19/07/2023.
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