Basavaraj Gurusiddappa Sindhur Vs ITO (TDS) (Karnataka High Court)
Karnataka High Court held that interest under section 201 of the Income Tax Act and late filing fee under section 234E leviable for non-deduction of TDS from sale consideration paid to Bengaluru Development Authority [BDA] for allotment of made by BDA.
Facts- The petitioner had applied to the 3rd respondent/Bengaluru Development Authority for allotment of a site. The petitioner was allotted a site in the Nadaprabhu Kempegowda Layout of the BDA for a total sale consideration of ₹96,87,510/-. BDA officials has insisted to remit the entire balance amount without deducting any TDS.
Thereafter, upon obtaining legal advice, since the allotment made by the BDA was likely to be cancelled, the petitioner paid a sum of ₹96,875/- on 29.09.2018 being 1% TDS amount. Accordingly, after payment of the said TDS, the petitioner got generated Form-16B TDS Certificate and 26QB-Statement and furnished the same to the BDA.
Subsequently, the petitioner received intimation dated 03.10.2018, whereunder, a sum of ₹1,23,010/- was demanded by charging a sum of ₹26,136/- as interest u/s. 201 of the IT Act and late filing fee of ₹96,875/- u/s. 234E of the IT Act. Being aggrieved, the present writ petition is filed.
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