2026 (5) TMI 172

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.... moved, thus the appeal of the assessee is disposed of after hearing the Ld. DR. 3. In this case intimation u/s.200A of the Act was passed by the ACIT, CPC, TDS, treating the assessee in default for non deduction of TDS on the payment made for property purchase of property by the assessee. The short deduction of TDS was arrived at Rs.3,48,333/- and including interest the net payable was determined at Rs.3,51,820/-. Before the NFAC the assessee submitted that the provisions of section 194-IA of the Act are not applicable and the assessee is not required to deduct TDS @ 1% on the purchase of the property when value of such property is less of Assessee's share than Rs.50 lakhs. The Assessee contended that the provisions of section 194-IA of....

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....deed dated 3.7.2013 for Rs. 1,50,00,000/-. The 1/4th share purchase consideration for each person was only Rs. 37,50,000/- each. The AO held that since the value of the property purchases under single sale deed was exceeding Rs. 50,00,000/-therefore, as per section 194 IA(2), the assessee was required to deduct TDS @1%. The AO thus held that all the four assessee's as defaulter u/s. 201(1) and created a total liability @ 1% i.e. Rs. 1,50,000/- by a common order u/s. 201(1) of the Act and Ld. CIT(A) confirmed the findings of the AO. During the hearing, Ld. Counsel for the assessee draw our attention towards the Paper Book-I Page no. 1 to 8 which is a copy of purchase deed dated 3.7.2013 was attached especially page no. 6 para no. 4 of the Sa....

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.... 50,00,000/- each. transferee is a separate income tax entity therefore, the law has to be applied with reference to each transferee as an individual transferee /person. It is also noted that Section 194-IA was introduced by Finance Act, 2013 effective from 1.6.2013. It is also noted from the Memorandum explaining the provisions brought out alongwith the Finance Bill wherein it was stated that "in order to reduce the compliance burden on the small tax payers, it is further proposed that no deduction of tax under this provision shall be made where the total amount of consideration for the transfer of an immovable property is less than fifty lakhs rupees." We further find that the main reason by the AO is that the amount as per sale deed is R....