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TMI Blog2019 (5) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... acs. Therefore, in the instant case, we note that the total sale consideration is only ₹ 60,12,000/- and the admitted fact as taken note by AO Ld. CIT(A) is that Shri Anant Ram Kumawat and Smt. Seema Kumawat are the co-owners, and jointly owning the immovable property. So, the sale consideration has to be divided equally into two by virtue of sec. 46 of the Transfer of Property Act which prescribed that where immovable property is transferred for a consideration by persons having distinct interest therein. In this case consideration for each transferor comes to ₹ 30,06,000/- each, which is below the prescribed limit of ₹ 50 lacs given by the statute as aforesaid and, therefore, in the light of the same, we are of the opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 - SHRI N. K. SAINI, VICE PRESIDENT AND SHRI A. T. VARKEY, JUDICIAL MEMBER For The Appellant : Sh. Sunil porwat,CA For The Respondent : Sh. P. K. Singhi, DR ORDER PER A. T. Varkey, J.M. This is an appeal preferred by the assessee against the order of Ld. Commissioner of Income Tax (Appeals-1, Udaipur dated 09.04.2018 for AY 2016-17 on the following grounds of appeal. 1. The Ld.CIT(A) has erred on facts and in law in upholding the order of Deputy CIT Range-TDS raising demand of ₹ 14,30,856/- u/s. 201(1)/201(1A) on account of non deduction of tax at source in the name of tranferror by not accepting the claim of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was sold to the assessee. Though the assessee company deducted TDS @ 1% of the sale consideration by quoting the PAN of Shri Vijay Kumawat, who was not the actual owner of the property and the owners of the property are Shri Anant Ram Kumawat and Smt. Seema Kumawat. According to him, TDS should have been deducted in the name of the actual owners and not in the name of the Power of Attorney holder. AO also found fault with the assessee not mentioning the PAN details of the joint owners so AO was of the view that the provisions of sec. 206AA of the Act were applicable and tax was deductible at source @ 20% of the purchase consideration of ₹ 60,12,000/- and, therefore, the AO after hearing the assessee concluded that TDS was deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Vijay Kumawat (POA) has given his PAN details and the entire sale consideration has been received through banking channel of Shri Vijay Kumawat s account. Though in the eyes of law Shri Vijay Kumawat (POA) as no title to the property in question he has been authorized by the Co owners of the immovable property in question to transfer the jointly hel;d immovable property and, therefore, in law Shri Vijay Kumawat (POA) is an agent acting under a Power of Attorney the authority which is defined and limited by the statutory laws of Power of Attorney Act. The extent of the power of transfer depends upon the interest of the transferor or the limitation upon his authority given by the donor Shri Vijay Kumawat, is only the Power of Attorney h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon. (2) 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.(emphasis given by us) (3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section. Explanation - For the purposes of this section,- (a) agricultural land means agricultural land in India, not being a lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 50 lacs given by the statute as aforesaid and, therefore, in the light of the same, we are of the opinion in the facts as discussed, supra, that the provisions of sec. 194 IA of the Act are not applicable in the instant case and, therefore, provisions of section 194-IA of the Act are not attracted. In any case, we note that when the department was knowing the PAN details of the Power of Attorney holder Shri Vijay Kumawat who was none other than the son and brother of the Joint Owners Shri Anant Ram Kumawat and Smt. Seema Kumawat respectively, the AO could have easily found out whether these co-owners have reflected the sale consideration as discussed above in their respective Return of Income, if he had made some enquiry or referred the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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