Appeal allowed due to invalid demands under tax sections; consideration paid below threshold amount.

The appeal was allowed as the demands under sections 201(1) and 201(1A) for the assessment year 2015-16 were deemed invalid. The Tribunal found the demands unjustified as the consideration paid was below the threshold amount specified in Section 194IA. The second ground raised was of a general nature and did not require specific adjudication.

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Issues involved: Appeal against order of ld. CIT(A) regarding demands u/s 201(1) and 201(1A) for assessment year 2015-16.

Summary:

Issue 1: Demands u/s 201(1) and 201(1A)
The appeal was filed against the order of ld. CIT(A) concerning demands u/s 201(1) and 201(1A) for the assessment year 2015-16. The assessee argued that the provisions of Section 194IA of the Act should not be applicable as the consideration paid was below the threshold. The AO treated the assessee as in default based on a higher purchase cost. However, it was found that the consideration paid by the assessee was Rs.31.50 lacs, below the threshold of Rs.50 lacs as per Section 194IA. Consequently, the demand raised by the AO u/s 201(1) for non-deduction of Tax Rs.31,500/- and interest levied u/s 201(1A) at Rs.16,380/- was deemed unjustified. The Tribunal set aside the findings of the ld. CIT(A) and allowed the appeal on this ground.

Issue 2: General Ground
The second ground raised by the assessee was of a general nature and did not require any specific adjudication.

In conclusion, the appeal of the assessee was allowed, and the demands u/s 201(1) and 201(1A) were deemed invalid. The order was pronounced in the open Court on 24/03/2023.

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