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Manne Rajesh Kumar Versus The Deputy Director of Income Tax (IT & TP) , Visakhapatnam

2017 (9) TMI 430 - ITAT VISAKHAPATNAM

TDS u/s 195 - Interest u/s 201(1A) - Purchase of property from non-resident - On behalf of NRI, the Payment made to GPA Holder (for purpose of facilitating transactions in India) and Dewan Housing Limited(Housing loan taken by seller) - Amount not paid directly to NRI - Held That:- Payments made to both the parties constitutes the payments made to the non-resident and the TDS is deductible as per the provisions of section 195. - Decided against assessee. - Long Term Capital Loss - NIL Demand .....

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. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri D. Balaji, AR For The Respondent : Shri S. Ravi Shankar Narayan, DR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal filed by the assessee is directed against order of the Commissioner of Income Tax (Appeals)-10 {CIT(A)}, Hyderabad vide ITA No.0008/CIT(A)-10/2014-15 dated 24.3.2016 for the assessment year 2012-13. 2. The assessee has raised following grounds of appeal: 1. The Appellate Order passed by the Learned Commissioner .....

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to have allowed the contention of the assessee discussed in paragraph 4.9 of the order passed by the Learned CIT (Appeals) as the ground taken by the assessee is a legal ground. 4. The Learned CIT (Appeals) ought to have seen that the provisions of Section 195 are applicable to payments made to non-resident or its agent, and not to a bank which provided a loan and to a GPA holder. 5. The Learned CIT (Appeals) ought not to have used 20.6% as the rate of TDS that requires to be deducted. 6. The Le .....

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e contention of the assessee that the payment made to the GPA holder who is an agent of non resident and the payments made to the Dewan Housing, is not liable for deduction of TDS as per the provisions of section 195 of the Income Tax Act, 1961 (hereinafter called as 'the Act'). In the assessee s case, the assessee purchased the property from Mr. G. Satish Kumar, resident of the USA vide document No.1492 on 11.4.2011 and registered before the SRO, Vizianagaram for a sum of ₹ 34 lak .....

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lance amount of ₹ 5,86,000/- was paid to the GPA holder. Since the payment was made to the GPA holder and the Dewan Housing Finance Ltd. and it was not paid to NRI directly, the provisions of section 195 of the Act are not attracted. 3. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The assessee has purchased the property belonging to Shri Satish Kumar, who is a resident of USA and who happens to be NRI. Smt. .....

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201(1A) of the Act on the payment made to NRI. The assessee has purchased the property from Shri Satish Kumar an NRI. As per the provision of I.T. Act, the assessee required to deduct the tax at source u/s 195 of the Act on the payment made to Non-resident but not deducted the tax. However, the non-resident who sold the land to the assessee has filed the return of income disclosing the long term capital gains on 14.12.2012. The A.O. charged the interest u/s 201(1A) of the Act from the date of pa .....

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ng long term capital gains which resulted in long term capital loss. Consequently, there was no demand or tax payable by the seller for sale of the property to the assessee. The seller had filed the return of income and the same was admitted by the A.O. in the remand report filed before the Ld. CIT(A). The Ld. A.O. also accepted that there was no sum chargeable to tax as per the return of income filed by the non-resident. Since there is no tax payable by the non-resident and the sale of the prop .....

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lity. This view is supported by instruction No.2 of 2014 issued by the CBDT dated 26.2.2014. Hence, the Ld. A.R. argued that the orders of the lower authorities be set aside. 6. On the other hand, the Ld. D.R. relied on the orders of the lower authorities. 7. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. In the instant case, the assessee has purchased the property from Mr. G. Satish Kumar who is a non-resident. As .....

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