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TMI Blog2020 (2) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... 00A of the Income Tax Act, 1961 (the Act) concerning AY 2014-15. 2. As per main grounds of appeal, the assessee has challenged the applicability of Section 234E r.w.s. 204 of the Act whereby late filing fees of Rs. 4,39,245/- was imposed for the FY 2013-14 concerning AY 2014-15. 3. It is the case of the assessee that section 200A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") is machinery provision providing mechanism for processing a statement of deduction of tax at source and for making adjustments which are arithmetical or prima facie in nature and does not create any charge in any manner. This provision specifically provides for computing fee payable under s.234E w.e.f. 01/06/2015. It is thus the case of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference to the amount as per sale deed. In the instant case, there are 8 transferee's and in case of 4 transferee's consideration is below Rs. 50 Lakhs, whereby, provisions of section 194IA(1) is not applicable. Accordingly, late fees u/s. 234E is not applicable in case of these 4 transferee's." 7. The additional ground raised being legal in nature and for which relevant facts are available on record, stands admitted under Rule 11 of the ITAT Rules. 8. As per the additional grounds of appeal, the assessee has taken alternative plea that obligation to deduct TDS @ 1% under s.194IA(1) of the Act is not applicable in respect of transfer of immovable property of less than Rs. 50 Lakhs by any person to a transferee. It was conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties and perused the records especially the impugned order as well as the provisions of law on the subject and the case laws cited by the Ld. DR in his written submissions. We find that in the instant case Sh. Pradeep Soni; Smt. Babli Soni; Sh. Vinod Soni and Smt. Beena Soni of same family, purchased 1/4th undivided equal shares in immovable property, Plot No. 94, Block-F, SLF Model Town, Sector-10, Faridabad vide single registered sale deed dated 3.7.2013 for Rs. 1,50,00,000/-. The 1/4th share purchase consideration for each person was only Rs. 37,50,000/- each. The AO held that since the value of the property purchases under single sale deed was exceeding Rs. 50,00,000/- therefore, as per section 194 IA(2), the assessee was required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovable property is less than Rs. 50,00,000/-. However, section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) is also, obviously, applicable only w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed. In the instant case there are 04 separate transferees and the sale consideration w.r.t. each transferee is Rs. 37,50,000/-, hence, less than Rs. 50,00,000/- each. Each transferee is a separate income tax entity therefore, the law has to be applied with reference to each transferee as an individual transferee / person. It is also noted that Section 194-IA was introduced by Finance Act, 2013 effective from 1.6.2013. It is also noted from the Memorandum explaining the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Soni vs. ITO will apply mutatis mutandis in these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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