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TMI Blog2022 (12) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... other transferee) i.e., either credit in its accounts or actual payment. When the provision is read as a whole, it gives an infallible impression that obligation cast u/s 194IA is qua each transferee and not qua the aggregate consideration. The reasons are not far to seek. It will not be practicable to achieve the requirement of second limb if the case of the Revenue is accepted that it is qua total consideration involved and not each transferee. Obligation cast u/s 194IA arises to a particular transferee at the time of payment of consideration or at the time of credit in its own accounts. Law cannot be read to expect one transferee to deduct TDS on behalf of other transferee at the time action taken by him towards payment or credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee against the order of the Commissioner of Income Tax (Appeals) -XXXI, New Delhi [ CIT(A) in short] dated 23.01.2019 arising from the assessment order dated 27.02.2017 passed by the Assessing Officer (AO) under Section 201(1) r.w.s. 201(1A) of the Income Tax Act, 1961 (the Act) concerning AY 2016-17. 2. As per its grounds of appeal, the assessee has challenged the action of the Revenue Authorities in imposing the liability under Section 201(1) r.w. Section 201(1A) at Rs.67,200/- on the grounds of infringement of provisions of Section 194IA(1) of the Act for non deduction of tax while making payment for purchase of property. 3. When the matter was called for hearing, the ld. counsel for the assessee, at the outset, submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the CIT(A) is called for. 5. We have carefully considered the rival submissions. In the instant case, few admitted facts are required to be noted. The assessee herein is one of the joint transferees for purchase of property for a total consideration of Rs.55 lakh which is more than threshold limit as prescribed under Sect ion 194IA of the Act. However, the assessee in the instant case, being a joint owner claims that she is a joint holder to the extent of 75% in the property. The assessee herein has paid a sum of Rs.40 lakhs only as a joint transferee of the property. The question thus piosed for consideration herein is whether any legal obligation arises under Section 194IA of the Act where the consideration paid by each transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent transferor any sum by way of consideration for transfer of immovable property. Secondly, obligation to deduct tax arises at the time of credit of such sum to the account of the transferor or at the time of payment of such sum to the transferor. Thus two factors co-exist for applicability of Section 194IA. The first factor, as noted above, relates to the obligation of the transferee and the second factor fixes obligation to deduct tax at the time of credit or payment. When read combinedly; while the first limb of Section 194IA refers to a singular expression, i.e., transferee (in distinction to transferee(s) combined), second limb provides for time of discharge of obligation which in turn, depends on the action of each transferee (in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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