TMI Blog2018 (12) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... deed for four persons Section 194-IA will be applicable. It is noted that AO has passed a common order u/s. 201(1) for all the four transferees. In order to justify his action since in case of separate orders for each transferee separately, apparently, provisions of section 194IA could not had been made applicable since in each case purchase consideration is only ₹ 37,50,000/-. This action of AO shows that he was also clear in his mind that with reference to each transferee Section 194IA was not applicable. The addition made by the AO and confirmed by the CIT(A) is not sustainable in the eyes of law, thus the same is deleted. As far as issue of charging interest is concerned, the same is consequential in nature, hence, need not be adjudicated. - Decided in favour of assessee. - ITA No. 2736/Del/2015, ITA No. 2737/Del/2015, ITA No. 2738/Del/2015, ITA No. 2739/Del/2015 - - - Dated:- 10-12-2018 - Sh. H.S. Sidhu, Judicial Member And Shri O.P. Kant, Accountant Member For the Assessee : Sh. Raj Kumar, CA For the Department : Sh. B.S. Rajpurohit, Sr. DR. ORDER PER H.S. SIDHU, JM These appeals are filed by the different Assessee against the common ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the sub-registrar, Ballabhgarh vide his office letter No. 69 dated 18.2.2014, Sh. Pradeep Soni, Smt. Babli Soni, Sh. Vinod Soni Smt. Beena Soni had purchased an immovable property of ₹ 1,50,00,000/- vide registry made on 3.7.2012. AO observed that as per the provisions of Section 194-IA of the I.T. Act, 1961 w.e.f. 1st June, 2013, any persons being a transferee, responsible for paying (other than the person referred to in section 194LA to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one percent of such sum as income tax thereon . AO further observed that sub-section (2) of Section 194IA of the I.T. Act, 1961 further provides that 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. Accordingly, the assessee was required to deduct tax @ 1% on this amount and deposit the same to the cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .7.2014, assessee appealed before the ld. CIT(A), Faridabad who vide his impugned exparte order dated 26.3.2015 has dismissed the appeal of the assessee by observing that in the absence of any rebuttal offered by the assessee despite repeated opportunities during the course of appellate proceedings, ld. CIT(A) held that the AO has rightly made the additions. Aggrieved with the impugned exparte order, assessee is in appeal before the Tribunal. 3. Ld. Counsel for the assessee submitted that the provisions of deduction of TDS @1% u/s. 194-IA are not applicable qua assessee as the purchase consideration qua assessee is only ₹ 37,50,000/- being less than ₹ 50,00,000/- being 1/4th undivided equal share of the property of which total purchase consideration is ₹ 1,50,00,000/- for 4 persons consequently, both the lower authorities erred in law as well as on merits in invoking provision of section 201(1) 201(IA) and consequently calculating amount payable u/s. 201(1) as ₹ 1,50,000/-; ₹ 37,500/- and interest u/s. 201(1A) ₹ 27,000; ₹ 6,750/-. It was further submitted that the liabilities created u/s. 201 201(1A) for the part of purchase consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale deed dated 3.7.2013 for ₹ 1,50,00,000/-. The 1/4th share purchase consideration for each person was only ₹ 37,50,000/- each. The AO held that since the value of the property purchases under single sale deed was exceeding ₹ 50,00,000/- therefore, as per section 194 IA(2), the assessee was required to deduct TDS @1%. The AO thus held that all the four assessees as defaulter u/s. 201(1) and created a total liability @ 1% i.e. ₹ 1,50,000/- by a common order u/s. 201(1) of the Act and Ld. CIT(A) confirmed the findings of the AO. During the hearing, Ld. Counsel for the assessee draw our attention towards the Paper Book-I Page no. 1 to 8 which is a copy of purchase deed dated 3.7.2013 was attached especially page no. 6 para no. 4 of the Sale Deed which is reproduced as under:- 4. That the actual physical possession of the said Residential Plot No. 94, Block-F, Area Measuring 500 sq. yards in the residential known as DLF s Model Town, Sector-10, Faridabad situated in Village Sihi, Tehsil Ballabgarh, Distt. Faridabad has been handed over and delivered by the Vendor to the Vendees and the Vendees have become the absolute and undisputed owner of above said pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, provisions of section 194IA could not had been made applicable since in each case purchase consideration is only ₹ 37,50,000/-. This action of AO shows that he was also clear in his mind that with reference to each transferee, Section 194IA was not applicable. Hence, we are of the considered view that the addition made by the AO and confirmed by the Ld. CIT(A) is not sustainable in the eyes of law, thus the same is deleted. As far as issue of charging interest is concerned, the same is consequential in nature, hence, need not be adjudicated. As regards the case laws cited by the Ld. DR are concerned, the same are on distinguished facts and therefore, not applicable in the present case. Accordingly, the grounds raised by the assessee stand allowed and as a result thereof, the appeal of the assessee is allowed. 6. Since in all the other 03 appeals, i.e., in the case of Vinod Soni vs. ITO in ITA 2736/Del/2015 (AY 2014-15); Babli Soni vs. ITO in ITA No. 2737/Del/2015 (AY 2014-15) and Beena Soni vs. ITO in ITA No. 2738/Del/2015 (AY 2014-15), similar facts are permeating, therefore, our finding given above in ITA No. 2739/Del/2015 (AY 2014-15) in the case of Pradeep Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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