2016 (2) TMI 271

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....pon the deposit of the TDS amount by the petitioner herein. 2. The instant petition has arisen in a circumstance where the provision in Section 194-IA is introduced to the Income Tax Act. The provision that has been introduced with effect from 01.06.2013 reads as hereunder: 194IA: Payment on transfer of certain immovable property other than agricultural land  (1) Any person, 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 che....

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.... deduction of TDS and the first respondent requiring the transferees to produce such proof for deduction of TDS. 4. In a normal circumstance, there can be no cavil with regard to the insistence by the first respondent. However, what requires consideration in the instant case is as to whether in the facts evolving herein such insistence by the first respondent based on the communication dated 05.06.2013 (Annexure-R2) would be justified and as to whether the denial of registration of the document in favour of the petitioner could be sustained. To consider this aspect of the matter what requires to be noticed is that the petitioner is a successful bidder in the auction conducted by the second respondent to sell the property towards recovery o....

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....ce stated above. In the peculiar circumstances of the instant case, where the petitioner being an auction purchaser had paid the entire sale consideration much earlier to the provision coming into force, the endorsement dated 04.12.2013 requiring the petitioner to deduct the income tax and indicating that the registration would be made thereafter cannot be sustained. 6. To the said extent the endorsement dated 04.12.2013 is quashed. A direction is issued to the first respondent to register the sale certificate which is kept pending in No.P 5068/2013-14 subject to all other compliances being made but without insisting upon deduction of TDS and release the document to the petitioner. 7. Notwithstanding the above direction, it is made clear ....