TMI Blog2018 (10) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... - - Dated:- 10-10-2018 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Assessee : Shri C.V.S.Murthy, AR For The Revenue : Shri V.Rama Mohan, DR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal is filed by the assessee against the order of the Commissioner of Income Tax(Appeals) [CIT(A)]-10, Hyderabad vide I.T.A.No.0101/CIT(A)-10/2014-15 dated 05.02.2016 for the assessment year 2009-10. 2. All the grounds of appeal are related to the issue of non-deduction of tax at source and payments made to the non-residents and consequent levy of interest u/s 201(1)/201(1A) of the Income Tax Act, 1961 (herein after called as Act ). 3. Brief facts of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act and the assessee has not committed any default. However, not being convinced with the reply of the assessee, the AO treated the assessee, as assessee in default u/s 201(1)/201(1A) of the Act with respect to the shares of property of Shri Vishnu Tej and Shri Krishna Tej, the sons of Shri M.V.Sastry for ₹ 20,49,330/- and accordingly passed the order u/s 201/201(1A) of the Act and raised the demand of ₹ 6,71,230/- as under : 5.The tax deductible is worked out at 20.60% (treating the rate of TDS @20% on capital gains, education cess @2% and secondary and higher educational cess @1% and interest @1%p.m. and the details are as under : Amount Paid (Rs.) Tax deductible @20.60% (Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd attracts TDS u/s 195 of the Act. In the instant case, there was no direct payment made by the assessee to the non-residents. The entire payment was made to the resident Indian who is also the father of the non residents. The revenue did not establish that the payment has gone to the non residents. In the circumstances, we are of the considered opinion that there is no case for invoking the provisions of section 195 of the Act. 6.1. On the similar facts, the Hon ble ITAT, Chandigarh A Bench in Rakesh Chauhan Vs. Deputy Director of Income Tax (International Taxation) in ITA Nos. 752 753/Chd/2009 dated 27th November 2009 has taken the similar view. For ready reference, we extract relevant part of the order of the Coordinate Bench whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute that ShriParamjit Singh had the right to sell the land in question. The question of TDS under s. 195 will only arise when payment is made by the said ShriParamjit Singh to the actual owners of land sold. There is no ambiguity about the legal position insofar as in the question as to whether the payments to the resident can be covered by s. 195 of the Act. This section only applies to payments which are made to nonresidents. Under these circumstances, unless the Revenue can demonstrate that the resident has only acted as an agent to receive the money at the instruction of non-residents as was the case before the Hon ble Bombay High Court in NarseeNagsee Co. (supra), the provisions of s. 195 cannot be invoked. A Co-ordinate Bench of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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