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2015 (3) TMI 682 - AT - Income TaxNon deduction of TDS - payment for purchase of a property - CIT(A) held the assessee as an ‘assessee in default’ - payment of sale consideration made to a non-resident - Held that:- Order of the CIT(Appeals) can be sustained in part only i.e., with regard to the quantum of tax that needs to be deducted at source and consequential levy of interest u/s. 201(1A) of the Act. It is not in dispute that Mrs. Shyamala Vijai and Mrs. Poornima Shivaram were entitled to half share each over the property that was sold to the appellant. In fact, as we have already seen, the sale deed clearly acknowledges the receipt of sale consideration of ₹ 1.20 crore by both the vendors in equal shares. In law, Mrs. Shyamala Vijai and Mrs. Poornima Shivaram are entitled to half share each over the property. The share of each of the vendors would therefore be ₹ 60 lakhs. Mrs. Shyamala Vijai is, admittedly, a non-resident and to the extent of ₹ 60 lakhs paid to her, the provisions of section 195 are attracted and the assessee ought to have deducted tax at source while making payments to the non-resident through Mrs. Shyamala Vijai. Thus we allow the appeals of the assessee in part and hold that the assessee can be considered as an ‘assessee in default’ only to the extent of ₹ 60 lakhs paid to the non-resident. Levy of consequential interest u/s. 201(1A) should be modified accordingly. - Decided partly in favour of assessee.
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