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TMI Blog2018 (12) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... 194-IA are not applicable qua assessee as the purchase consideration qua assessee is only Rs. 37,50,000/- being less than Rs. 50,00,000/- being 1/4th un-divided equal share of the property of which total purchase consideration is Rs. 1,50,00,000/- for 4 persons, consequently, both the lower authorities erred in law as well as on merits in invoking provisions of section 201(1) and 201(1A) and consequently calculating amount payable u/s. 201(1) as Rs. 1,50,000/-/ Rs. 37,500/- and intt. u/s. 201(1A) Rs. 27,000/- / Rs. 6,750/-. 2. That without prejudice, the liabilities created u/s. 201 & 201(1A) for the part of purchase consideration paid prior to 1.6.2013 is un-sustainable as provisions of section 194-IA are operative w.e.f. 1.6.2013. 3. That without prejudice, in view of 1st provisio to Section 201(1), no liability should have been created u/s. 201(1). 4. That without prejudice, inttt. u/s. 201(1A) have been wrongly charged @1.5% per month against correctly @1% as provided in Sec. 201(1A)(i). 5. That without prejudice, in any case, intt. u/s. 201(1A) has to be charged only for the period as prescribed in proviso to Sec. 201(iA), i.e. till the date of furnishing the return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Section 194IA of the Income Tax Act, hence, Section 194IA is not applicable. AO further observed that sub-section (2) of section 194IA of the Income Tax Act, 1961 provides that no deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees. AO further observed that in the instant case, consideration for the transfer of an immovable property is Rs. 1,50,00,000./- i.e. more than Rs. Fifty lakhs and the same is executed through a single sale deed made on 3.7.2013 and duly registered with Sub-Registrar, Ballabhgarh in respect of the transfer of an immovable property. As such, provisions of section 194IA are very much applicable in this case. Accordingly, a show cause notice was sent to the assessee, but no compliance was made by the Assessee. However, AO observed that as per the provisions of Rule 30(2) of the Income Tax Rules, 1962, the Persons Responsible were required to deduct tax u/s. 194(IA) and deposit the same to the credit of the Central Govt. account within a period of seven days from the end of the month. In view of the above, AO held that the Person Responsible in default of TDS and char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... single and common proceedings have been initiated in respect of 4 individual buyers namely Pradeep Soni, Babita Soni, Vinod soni and Beena Soni and a common order has been passed treating all these four as one single unit/one single assessee. To support his case, he filed two paper books i.e. Paper Book- I which is containing pages 1 to 13 in which he has attached the copy of purchase deed dated 3.7.2013; copy of letter to AO dated 27.2.2014; copy of show cause notice dated 21.4.2014 by the AO and the Memorandum to Finance Bill, 2013. In second Paper Book-II which is containing pages 1 to 21 having the copy of 1st Paper Book; details of party wise payment for purchase of property; Canara Bank statement showing payment (Pradeep Soni); ICICI Bank Statement showing payment (Pradeep Soni); ICICI Bank statement showing payment (Babli Soni); HDFC Bank statement showing payment (Vinod Soni); HDFC Bank Statement showing payment (Beena Soni) and Loan Statement ICICI showing payment (All 04 parties). 4. On the other hand, Ld. DR strongly relied upon the orders of the authorities below, which does not need any interference on our part. To support the order of the authorities below, he relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable on any person being a transferee, so section 194-IA(2) is also, obviously, applicable only w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed. In the instant case there are 04 separate transferees and the sale consideration w.r.t. each transferee is Rs. 37,50,000/-, hence, less than Rs. 50,00,000/- each. Each transferee is a separate income tax entity therefore, the law has to be applied with reference to each transferee as an individual transferee / person. It is also noted that Section 194-IA was introduced by Finance Act, 2013 effective from 1.6.2013. It is also noted from the Memorandum explaining the provisions brought out alongwith the Finance Bill wherein it was stated that "in order to reduce the compliance burden on the small tax payers, it is further proposed that no deduction of tax under this provision shall be made where the total amount of consideration for the transfer of an immovable property is less than fifty lakhs rupees." We further find that the main reason by the AO is that the amount as per sale deed is Rs. 1,50,00,000/-. The law cannot be interpreted and applied differently for the same transaction, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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