Case Law Details
Vinod Soni Vs ITO (ITAT Delhi)
Conclusion: Limit of exemption of Rs. 50 lakh under section 194-IA(2) was applicable to each transferee separately as each transferee was a separate income tax entity therefore, the law has to be applied with reference to each transferee as an individual transferee / person and not with reference to the amount as per sale deed.
Held: In the instant case, four persons of same family purchased 1/4thundivided equal shares in immovable property for Rs. 1,50,00,000/- and 1/4th share purchase consideration for each person was only Rs. 37,50,000/- each. 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), assessee was required to deduct TDS @1%. In the instant case, there were 04 separate transferees and the sale consideration w.r.t. each transferee was Rs. 37,50,000/-, hence, less than Rs. 50,00,000/- each. Each transferee was a separate income tax entity therefore, the law has to be applied with reference to each transferee as an individual transferee / person and and not with reference to the amount as per sale deed.
S. 194-IA TDS: The exemption of Rs. 50 lakh in s. 194-IA(2) is applicable w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed. Each transferee is a separate income tax entity and the law has to be applied with reference to each transferee as an individual transferee / person
FULL TEXT OF THE ITAT JUDGMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
