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TMI Blog2021 (8) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... e for paying ₹ 31,50,000/- being the consideration for his share in the property and has actually paid ₹ 31,50,000/- only, there is no requirement to deduct tax at source in terms of section 194IA of the Act. We find that similar view has been taken by the Coordinate Bench in subsequent decision in case of Vinod Soni vs. ITO, TDS [ 2018 (12) TMI 636 - ITAT DELHI] where it was held that section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) is also applicable only w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed. 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. The contentions advanced by the ld CIT/DR that in case of joint owners of the property, the threshold limit of ₹ 50,00,000/- is to be determined property-wise and not transferee wise cannot be accepted. Thus assessee cannot be held as assessee in default on account of non-deduction of tax u/s 194IA and therefore, the demand U/s 201(1) and 201(IA) of the Act is hereby set aside. - Decided in favour of assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has purchased an immovable property on 03.09.2014 for a consideration of ₹ 1,26,00,000/- from UIT, Bhilwara and as per OLTAS, no tax was deducted U/s 194IA of the Act. Therefore, the assessee was issued a show-cause notice U/s 201 dated 12.01.2017 and thereafter, on 12.01.2018 and after considering the submissions filed by the assessee, the Assessing Officer has held the assessee to be in default within the meaning of Section 201 of the Act. It was submitted that in the instant case, the assessee has failed to deduct tax @ 1% at the time of payment of his share to the transfer of the property as per provisions of Section 194IA of the IT Act. Therefore, the assessee has committed default for non- deduction of TDS on payment of ₹ 31,50,000/- which is of the total consideration of ₹ 1,26,00,000/-, being the assessee s share in the property. It was submitted that in case of joint owners of the property, the threshold limit of ₹ 50,00,000/- is to be determined property-wise and not transferee-wise and the number of buyers and sellers would not matter at all and so long as the value of the property is more than ₹ 50 lacs, the provisions of Section 194IA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property means any land (other than agricultural land) or any building or part of a building. 9. A close reading of the above provisions provides that any person, being a transferee, responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property shall, at the time of credit of such 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. It however, provides an exception 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. In other words, it provides that any person responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property exceeding ₹ 50 lacs, shall be liable for deduction of tax at source at the rate of one percent of such sum. In the instant case, even though the total consideration for the immovable property has been agreed at ₹ 75,00,000, the assessee is responsible for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in subsequent decision in case of Vinod Soni vs. ITO, TDS (supra) where it was held that section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) is also applicable only w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed. 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. The relevant findings read as under: 5.2 After perusing the Paper Book and the relevant provisions of law, we find that Section 194-IA(2) provides that Section 194- IA(1) will not applicable where the consideration for transfer of immovable property is less than ₹ 50,00,000/-. However, section 194-IA(1) is applicable 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 ₹ 37,50,000/-, hence, less than ₹ 50,00,000/- each. Each transferee is a separate income tax entity th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the consistent position taken by various Benches of the Tribunal, the assessee cannot be held as assessee in default on account of non-deduction of tax u/s 194IA of the Act and therefore, the demand of ₹ 31,500/- and ₹ 16,380/- U/s 201(1) and 201(IA) of the Act is hereby set aside. ITA No. 246/JODH/2019 10. Both the parties submitted that the facts and circumstances of the case in this appeal is exactly identical to facts and circumstances of the case in ITA No. 245/JODH/2019 and therefore, contentions as advanced by the respective parties in ITA No. 245/JODH/2019 may be considered. 11. Heard both the parties and purused the material available on record. Admittedly and undisputedly, the assessee is responsible for paying ₹ 31,50,000/- being the consideration for his 1/4th share in the immoveable property and has actually paid ₹ 31,50,000/- only, therefore, following our findings and directions contained in ITA No. 245/JODH/2019, there was no requirement to deduct tax at source in terms of section 194IA of the Act. The assessee cannot be held as assessee in default on account of non-deduction of tax u/s 194IA of the Act and therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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