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TMI Blog2024 (11) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided the challan receipt with the petitioners for the late payment made by him for delay in linking PAN with Aadhaar. Therefore, the question of vendor's PAN number being invalid does not arise. Since Section 206AA(1) stipulates that if any person who is entitled to receive any sum on which tax is deductible at source under the Act, fails to furnish his PAN number to the deductor, then the deductor shall deduct tax at source (TDS) at the rate of 20% and as per Section 206AA(6), if the PAN number provided by the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his PAN to the deductor and the provisions of sub-section (1) of Section 206AA will apply, the question of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the consideration paid to the vendor as required under Section 194IA of the Income Tax Act, 1961 and that the vendor has also produced a copy of his PAN card before the Sub Registrar. While so, the respondent has passed the impugned order alleging that there has been a short deduction of TDS by the petitioners to the extent of Rs. 10,64,000/- and Rs. 10,640/- towards interest. When the petitioners made enquiry with their vendor, the vendor informed that he had linked his PAN with his Aadhaar on 02.08.2024 by paying a late fee of Rs. 1,000/-. Since the vendor has also provided the challan receipt with the petitioners for the late payment made by him for delay in linking PAN with Aadhaar, the question of vendor's PAN number being inva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to seek clarification if there was any confusion. He would further submit that the petitioners' claim regarding '1.000' TDS rate is misplaced and while Section 194-IA mandates 1% TDS rate for property transactions, Section 206AA overrides the said rate when the vendor's PAN is invalid or not linked to Aadhaar. Therefore, the demand for Rs. 11,20,000/- as TDS is based on 20% deduction, which is legally enforceable under Section 206AA. Hence, he prays for dismissal of these petitions. 5.Heard the learned counsel for the petitioners and the learned Standing Counsel for the respondent and perused the documents available on records. 6.It could be seen from the records that the petitioners have purchased a residential flat at Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctor and the provisions of sub-section (1) of Section 206AA will apply, the question of Section 206AA being applicable to the petitioners does not arise in as much as the petitioners remitted the sum of Rs. 56,000/- against their vendor's PAN number on 09.08.2024 and the petitioners filed the Form 26QB on 09.08.2024 mentioning their vendor's PAN number and that the Department's website has also accepted the same and did not give any indication that the PAN number of the petitioner's vendor was invalid. 9.For the foregoing reasons, this Court is of the view that the impugned orders passed by the respondent are contrary to the facts and circumstances of the cases and violative of the principles of natural justice and the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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