TMI Blog2016 (2) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... w, even though the provision had come into force as on the date of presentation of the sale certificate for registration, the petitioner having parted with the sale consideration much earlier, was not expected to deduct the amount and produce proof in that regard to the Sub-Registrar. It is no doubt true that in respect of the said amount the third respondent would have the right to recover the taxes due. But, in the instant case, the communication as addressed from the third respondent to the first respondent could not have been held against the petitioner in the circumstance stated above. In the peculiar circumstances of the instant case, where the petitioner being an auction purchaser had paid the entire sale consideration much earlier t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er mode, whichever is earlier, deduct an amount equal to one percent of such sum as incometax thereon. (2) 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. (3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section. 3. The provision requires that the transferee is required to deduct 1% TDS amount from the sale consideration payable to the Transferor. On introduction of the said provision, the Income Tax Department has addressed communications to all the Sub-Registrars to see that the provision is given effect and in that regard, the communication dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o such sale being confirmed in favour of the petitioner, the payment of the entire sale consideration of ₹ 3,08,10,000/- was made by the petitioner to the second respondent - Bank on 03.03.2012 which would enure to the credit of the borrower who is the assessee. However, the sale certificate was executed by the Bank in favour of the petitioner only on 11.09.2013 which was thereafter presented for registration. 5. In that light, if the provision contained in Section 194-IA as extracted above is noticed, the obligation on the transferee to deduct 1% of the sale consideration towards TDS had come into effect only on 01.06.2013. If that be the position, as on 02.03.2012 when the petitioner in the instant case as the transferee had paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration of the sale certificate in favour of the petitioner and release of the document shall not take away the right of the third respondent and the assessee to require the second respondent to answer the third respondent as to whether the income derived through the said sale transaction has been assessed to tax and the taxes has already been paid to the third respondent. If the payment has not been made, it would be open to the third respondent to recover the same from the assessee concerned. It is made clear that the instant order is passed in the peculiar facts and circumstances arising in the instant case. The first respondent shall now act upon this order and the registration shall be completed within a period of four weeks from the da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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