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2019 (6) TMI 1087 - AT - Income TaxTDS u/s 194IA - purchase of the land on piece meal basis from same party - each transaction is less than 50 lakhs but total amount is much more - consideration for the transfer of an immovable property - HELD THAT:- As per sub-section (2) of Section 194IA no deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than ₹ 50 lakhs.The assessee in instant case had purchased three properties on three different dates, although, they bear the same Khasra number and the seller is the same. This indicates that the assessee had purchased the land on piece meal basis. In my opinion, since, the value mentioned in each sale deed is less than ₹ 50 lakhs, therefore, the provisions of Section 194IA will not be applicable to the assessee. Merely because, the seller is the same and the Khasra number of the three properties purchased by the assessee are same, the same cannot be a ground to treat the assessee as an assessee in default when the value mentioned in each sale deed executed on 3 different dates is less than ₹ 50 lakhs. Set aside the order of the CIT(A) and direct the AO not to treat the assessee as an assessee in default. The ground raised by the assessee is accordingly allowed. TDS on Labour payment - payment made by the assessee to labour is below ₹ 20,000/- - CIT(A) has not justified in confirming the same - HELD THAT:- Total labour payment of ₹ 27,07,195/- the assessee had not deducted TDS on an amount of ₹ 13,55,585/- for which the AO held the assessee as an assessee in default. Since, the assessee could not substantiate with evidence before the CIT(A) that no payment has been made exceeding ₹ 20,000/- to any person in a single day, he upheld the action of the AO. Assessee that given an opportunity he will produce the details either before the AO or before the CIT(A) as the case may be to substantiate that no payment exceeding ₹ 20,000/- has been paid to any person in a single day and that the assessee is not liable to deduct TDS from such labour payment. Restore the issue to the file of the AO with a direction to give one more opportunity to the assessee to substantiate with evidence to his satisfaction that assessee is not liable to deduct tax @ 2% on the amount of ₹ 13,55,585/- being the labour payment. AO shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. The ground raised by the assessee is accordingly allowed for statistical purposes.
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