TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 1087
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....r and are being disposed of by this common order. ITA No. 3920/Del/2018 (FY 2014-15): 2. Facts of the case, in brief, are that the assessee is engaged in the business of purchase and sale of land, construction and sale of flats etc. During the course of TDS verification the AO observed from the balance sheet as on 31.03.2015 that the assessee has made an advance payment of Rs. 61,00,000/- to Shri Vijay Kumar Ghai for purchase of land. He observed that the assessee purchased 3 plots measuring 190.15 sq. mt., 230.45 sq mt. and 230.45 sq. mt. during FY 2015-16 that were registered on 05.08.2015, 16.06.2015 and 15.06.2015 respectively. As per the Registration deeds that have been executed, all these plots bear the same address i.e., vacant pa....
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....ty of TDS on purchase of land shall not be arises and CIT(A) has not justified in confirming the same. 2. That the assessee has right to add, modify or delete any ground during the appeal proceedings." 6. The Ld. Counsel for the assessee strongly challenged the order of the CIT(A) in confirming the action of the AO in treating the assessee as an assessee in default. He submitted that the assessee had purchased three plots on three different dates although from the same person. The value of none of the properties mentioned by the AO exceeds Rs. 50 lakhs and, therefore, the assessee is not liable to deduct TDS as per the provisions of section 194IA of the Act. Referring to the decision of the Tribunal in the case of Vinod Soni, Babli Soni,....
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....d 15.06.2015 respectively. The value of each plot was Rs. 44 lakhs. I find the AO held that since all these plots bear the same address and all these have been purchased from the same person by the assessee, therefore, the assessee is liable to deduct TDS @ 1% from such payment as per the provisions of Section 194IA of the Act since, the combined value of the properties exceeds Rs. 50 lakhs. It is the submission of the Ld. Counsel for the assessee that since the properties are registered on three different dates and the area of each plot is different, therefore, assessee is not liable to deduct TDS @ 1% as per the provisions of Section 194IA of the Act. 9. The provisions of Section 194IA reads as under: "194IA. (1) Any person, being a t....
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....ue mentioned in each sale deed is less than Rs. 50 lakhs, therefore, the provisions of Section 194IA will not be applicable to the assessee. Merely because, the seller is the same and the Khasra number of the three properties purchased by the assessee are same, the same cannot be a ground to treat the assessee as an assessee in default when the value mentioned in each sale deed executed on 3 different dates is less than Rs. 50 lakhs. I, therefore, set aside the order of the CIT(A) and direct the AO not to treat the assessee as an assessee in default. The ground raised by the assessee is accordingly allowed. ITA No. 3921/Del/2018 (FY 2015-16): 11. Ground no. 1 by the assessee reads as under: 1. "That the AO is in error on the issue of la....
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....ich the AO held the assessee as an assessee in default. Since, the assessee could not substantiate with evidence before the CIT(A) that no payment has been made exceeding Rs. 20,000/- to any person in a single day, he upheld the action of the AO. It is the submission of the Ld. Counsel for the assessee that given an opportunity he will produce the details either before the AO or before the CIT(A) as the case may be to substantiate that no payment exceeding Rs. 20,000/- has been paid to any person in a single day and that the assessee is not liable to deduct TDS from such labour payment. 16. Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the AO with a di....