2024 (11) TMI 248

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....43 and DIN:TDS/2024/AL09003912/D/100001624886 dated 11.08.2024 and quash the same. 2.The case of the petitioners is that they have purchased a residential flat bearing Flat No.278, Dev Darshan Apartment, Barnaby Road, Kilpauk, Chennai-600 018 from one Kanyalal T Gohil under a Sale Deed dated 05.08.2024, registered as document No.4173 in the office of the SRO., Purasaiwalkam and at the time of transfer of property by registration of the Sale Deed, tax was deducted at source @ 1% of the consideration paid to the vendor as required under Section 194IA of the Income Tax Act, 1961 and that the vendor has also produced a copy of his PAN card before the Sub Registrar. While so, the respondent has passed the impugned order alleging that there ha....

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.... absolutely wrong and baseless. Therefore, the learned counsel for the petitioners prays for quashing the impugned orders and allowing these writ petitions. 4.Per contra, the learned Senior Standing Counsel for the respondent would submit that the justification report clearly shows that the TDS rate applicable was 20% as the vendor's PAN was deemed invalid due to the non-linkage with Aadhaar and when the report contained all relevant details, it was incumbent upon the petitioners to seek clarification if there was any confusion. He would further submit that the petitioners' claim regarding '1.000' TDS rate is misplaced and while Section 194-IA mandates 1% TDS rate for property transactions, Section 206AA overrides the sai....

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....#39;s PAN number being invalid does not arise. 8.Since Section 206AA(1) stipulates that if any person who is entitled to receive any sum on which tax is deductible at source under the Act, fails to furnish his PAN number to the deductor, then the deductor shall deduct tax at source (TDS) at the rate of 20% and as per Section 206AA(6), if the PAN number provided by the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his PAN to the deductor and the provisions of sub-section (1) of Section 206AA will apply, the question of Section 206AA being applicable to the petitioners does not arise in as much as the petitioners remitted the sum of Rs. 56,000/- against their vendor's PAN....