Case Law Details
Vinod Soni Vs ITO (ITAT Delhi)
Where individual share of consideration paid towards immovable property purchase by four persons including the assessee amounted to less than Rs. 50 lakhs, the assessee was not liable to deduct tax under section 194IA of Income Tax Act, 1961 even if value of the property purchased under single sale deed was exceeding Rs. 50 lakhs.
FULL TEXT OF THE ITAT JUDGEMENT
These appeals are filed by the different Assessee against the common order dated 26.3.2015 passed by the Ld. CIT(A), Faridabad relating to assessment year 2014-15. Since the grounds raised in these appeals are common, hence, the appeals were heard together and are being disposed of by this common order for the sake of convenience, by dealing with ITA No. 2739/Del/2015 (AY 2014-15) – Pradeep Kumar Soni vs. ITO, TDS Ward. The following are the common grounds raised by all the 04 assessees, hence, the ground in the case of Pradeep Kumar Soni are only reproduced hereunder:-
1. That under the facts and circumstances, the provisions of deduction of TDS @1% u/s. 194-IA are not applicable qua assessee as the purchase consideration qua assessee is only Rs. 37,50,000/- being less than Rs. 50,00,000/- being 1/4th un-divided equal share of the property of which total purchase consideration is Rs. 1,50,00,000/- for 4 persons, consequently, both the lower authorities erred in law as well as on merits in invoking provisions of section 201(1) and 201(1A) and consequently calculating amount payable u/s. 201(1) as Rs. 1,50,000/-/ Rs. 37,500/- and intt. u/s. 201(1A) Rs. 27,000/- / Rs. 6,750/-.
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