Rakesh Gupta Vs DCIT/ACIT-TDS (ITAT Chandigarh)
TDS Not on Total Property Price — Only on Your Share No TDS u/s 194-IA When Each Co-Buyer’s Share Is Below ₹50 Lakhs
Assessee jointly purchased a flat for ₹86,50,000 along with another co-buyer. His individual share was ₹43,25,000. AO held that since the total consideration exceeded ₹50 lakh, assessee ought to have deducted TDS @1% u/s 194-IA, and treated him as assessee-in-default u/s 201(1)/201(1A). CIT(A) confirmed.
Before Tribunal, assessee argued that obligation to deduct TDS arises only if his individual share exceeds ₹50 lakh, not the total joint-purchase value. Reliance was placed on ITAT Jaipur decision in Smt. Sandhya Gugalia vs DCIT (08.06.2018), which held that for joint buyers, Section 194-IA applies purchaser-wise.
ITAT accepted the contention and held that since assessee’s share was below the statutory threshold, no TDS liability arose. Consequently, the order treating him as assessee-in-default u/s 201(1)/201(1A) was quashed in full.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 28.02.2025 passed for assessment year 2018-19.
2. The grievance of the assessee is that ld.CIT (Appeals) has erred in upholding the order of AO passed u/s 201(1A) of the Income Tax Act, 1961.
