TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 994
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....s. 201(1)/201(1A) on account of non deduction of tax at source in the name of tranferror by not accepting the claim of assessee that tax is deducted at source in the name of Power of Attorney holder who executed the sale deed by providing his PAN and also received the payment. 2. The Ld.CIT(A) has erred on facts and in law in not appreciating the fact that on same transaction tax at source cannot be deducted twice and, therefore, the demand raised u/s. 201(1)/201(1A) is bad in law. 3. The Ld. CIT(A) has erred on facts and in law in not appreciating the claim of assessee that in case tax is to be deducted in hands of owner of property, then sale consideration being less than Rs. 50 lacs in the hand of each owner, there is no liability ....
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....hearing the assessee concluded that TDS was deductible at 20% of Rs. 60,12,000/- and accordingly created a demand of Rs. 12,02,400/- u/s. 201(1) and interest u/s.201(1A) of the Act of Rs. 2,28,456/- totaling Rs. 14,30,856/-. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who was pleased to confirm the action of the AO(TDS). Aggrieved, the assessee is before us. 4. We have heard rival submissions and gone through the facts and circumstances of the case. We note that the admitted facts are that the assessee has purchased the property as per sale deed dated 28.05.2015 from Shri Vijay Kumawat, a Power of Attorney holder (POA) of the Joint Owners of the property Shri Anant Ram Kumawat and Smt. Seema Kumawat. In the sale dee....
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....er of Attorney holder of the co-owners of the jointly held immovable property and cannot be termed as the transferor of the immovable property because Shri Vijay Kumawat only has the power or authority to transfer the property in question and not the ownership enjoyed by the co-owners in the jointly held immovable property, so Shri Vijay Kumawat (POA) cannot be termed the transferor of the immovable property. Here in this case, the transfer of the immovable property is undisputed, the only issue is that the assessee being the buyer/transferee has not deducted the TDS @ 1% from the transferor of the property i.e. from the Joint Owners of the property, that too without collecting their PAN details. Though, we note that the TDS has been deduct....
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....f clause (14) of section 2; (b) "immovable property" means any land (other than agricultural land) or any building or part of a building." 5. So, even though the admitted position is that the assessee buyer/transferee has not deducted tax in the hands of the Joint Owners of the property, still we note that sub-section(2) of sec. 194-IA of the Act provides an exception from deducting tax of 1% of the sale consideration, when the sale consideration for the transfer of an immovable property is less than Rs. 50 lacs. Therefore, in the instant case, we note that the total sale consideration is only Rs. 60,12,000/- and the admitted fact as taken note by AO & Ld. CIT(A) is that Shri Anant Ram Kumawat and Smt. Seema Kumawat are the co-owners, ....