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TMI Blog2017 (9) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Order passed by the Learned Commissioner of Income Tax Appeals - X, Hyderabad, in ITA No. 008/CIT(A)-10114- 15 is contrary to the law and facts of the case, insofar as it is against the assessee. 2. The Learned CIT (Appeals) ought to have seen that interest u/s 201(1A), is chargeable on the tax which is not paid, which is also in line with the CBDT Instruction No. 2/2014, and in the case of the assessee such interest is NIL as there was no tax payable by the seller. 3. Without prejudice to ground No. 2, the Learned CIT (Appeals) ought to have allowed the contention of the assessee discussed in paragraph 4.9 of the order passed by the Learned CIT (Appeals) as the ground taken by the assessee is a legal ground. 4. The Learned CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power of attorney to Smt. Allam Baby and the sale consideration was paid partly to Dewan Housing Finance Ltd. and the GPA holder on behalf of seller. The purchaser had paid a sum of Rs. 28,14,000/- to M/s. Dewan Housing Private Limited towards the adjustment of loan taken by the seller and the balance amount of Rs. 5,86,000/- was paid to the GPA holder. Since the payment was made to the GPA holder and the Dewan Housing Finance Ltd. and it was not paid to NRI directly, the provisions of section 195 of the Act are not attracted. 3. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The assessee has purchased the property belonging to Shri Satish Kumar, who is a res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has filed the return of income declaring long term capital gains which resulted in long term capital loss. Consequently, there was no demand or tax payable by the seller for sale of the property to the assessee. The seller had filed the return of income and the same was admitted by the A.O. in the remand report filed before the Ld. CIT(A). The Ld. A.O. also accepted that there was no sum chargeable to tax as per the return of income filed by the non-resident. Since there is no tax payable by the non-resident and the sale of the property does not result into any tax liability, there is no case for charging interest u/s 201 or 201(1A) of the Act. The fact that the deductee has no tax liability was known to the assessing officer at the time o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, the Board hereby directs that in a case where the assessee fails to deduct tax under section 195 of the Act, the Assessing Officer shall determine the appropriate proportion of the sum chargeable to tax as mentioned in sub section (1) of section 195 to ascertain the tax liability on which the deductor shall be deemed to be an assessee in default under section 201 of the Act, and the appropriate proportion of the sum will depend on the facts and circumstances of each case taking into account nature of remittances, income component therein or any other fact relevant to determine such appropriate proportion". 8. In the instant case, the deductee has filed the return of income on 14.12.2012 and the long term capital gains resulted into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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