Appeal on Interest Calculation & TDS for Property Purchase

The appeal involved issues related to interest calculation under Section 201(1A) and the application of Section 194IA for TDS deduction on property purchase. The appellant challenged the interest calculation and argued against TDS deduction due to purchase consideration below the threshold. The Assessing Officer imposed tax deductions under relevant sections. The CIT(A) partially allowed the appeal considering TDS threshold arguments. The Tribunal upheld the interest calculation but partly allowed the appeal for statistical purposes, granting a hearing to the appellant. The judgment was pronounced on 19/07/2023.

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Issues involved:
The issues involved in the judgment are related to the calculation of interest charged under Section 201(1A) and the application of Section 194IA regarding TDS deduction on the purchase of immovable property.

Issue 1 - Interest Calculation under Section 201(1A):
The appeal raised concerns about the interest charged under Section 201(1A) for Rs. 58,306, which the appellant argued was wrongly calculated and ought to be higher. The National Faceless Appeal Centre Delhi upheld the calculation, but the appellant sought a recalculation or restriction until the filing of the IT Return. The appellant's wife's case was cited as a reference where the interest was calculated at Rs. 7,843 on identical facts. The matter was to be remanded back to the Assessing Officer for recalculating in the interest of justice.

Issue 2 - Application of Section 194IA on TDS Deduction:
The additional grounds of appeal challenged the invocation of Section 201(1) and 201(1A) due to the purchase consideration being less than Rs. 50 lakhs from different sellers. The appellant argued that TDS deduction under Section 194IA was not applicable as the total purchase consideration was below the threshold. The authorities failed to consider a relevant decision cited by the appellant, and the appellant requested its admission in the interest of justice.

Judgment Details:
The Assessing Officer observed that the assessee failed to deduct TDS on a property purchase for Rs. 1,25,00,001, which was liable for a 1% tax deduction under Section 194IA. The Assessing Officer added Rs. 1,22,972 under Section 201(1) / 201(1A) of the Income Tax Act, 1961. The CIT(A) partially allowed the appeal, considering the appellant's contention regarding the TDS deduction threshold.

The Ld. A.R. argued for a higher interest calculation under Section 201(1A) and a reevaluation of the case based on the appellant's wife's situation. The Ld. D.R. supported the CIT(A)'s direction for verifying Form 26A and the necessity of providing relevant documents. The Tribunal noted the bonafide belief of both parties regarding TDS deduction thresholds but upheld the Assessing Officer's interest calculation under Section 201(1A. Grounds 1 & 2 were partly allowed for statistical purposes, with the appellant granted a hearing following principles of natural justice.

The appeal was partly allowed for statistical purposes, with the judgment pronounced in Open Court on 19/07/2023.

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