HARINAM SINGH,GHAZIABAD V. ITO, TDS - 2, VARANASI

ITA 25/VNS/2023

AI Insights

The case revolves around an appeal by Harinam Singh against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which upheld the penalty, late fees, and interest levied by the AO for non-deduction of TDS under Section 194IA during the Assessment Year 2014-15. The primary contention was whether Harinam Singh, as a co-owner of a property purchased for Rs. 65,00,000, was required to deduct TDS, given that his individual investment was below the threshold limit of Rs. 50,00,000. The tribunal examined the provisions of Section 194IA and the specifics of the property purchase, including the shared investment with another co-owner, Smt. Seema Singh.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26049 (ITAT-VARANASI)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Next Hearing Date: 10-09-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 24-02-2023
• Laws Referred To: Section 201, Section 194IA, Section 234E
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Keywords: TDS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, VARANASI BEFORE: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No.25/VNS/2023 (Assessment Year :2014-15) Harinam Singh House No.308, First Floor Sector-16A, Vasundhara Ghaziabad-201 012 Vs. ITO TDS-2, Varanasi PAN/GIR No.AAWPS6612E (Appellant) .. (Respondent) Assessee by None Revenue by Smt. Kavita Meena Date of Hearing 10/09/2024 Date of Pronouncement 29/11/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 25/01/2023 passed by NFAC, Delhi in relation to the order passed u/s.201 / 194IA for the A.Y.2014-15. 2. Assessee is aggrieved by penalty / late fees and interest amounting to Rs.1,92,400/- levied by the ld. AO u/s.194IA. From the perusal of the impugned order it is seen that on the basis of certain information it was found that assessee has purchased immovable property for Rs. 65,00,000/- during the F.Y. 2013-14 and since as per the provision of Section 194IA, ITA No.25/VNS/2023 Harinam Singh 2 TDS was not deducted, therefore ld. AO held that tax u/s.194IA @ 1% on Rs. 65,00,000/- and interest leviable u/s.234E – including late interest payment aggregates to Rs.1,92,400/- for which he raised the demand. The ld. CIT (A) noted that a notice was sent through ITBA portal, however, there was no response from the assessee. Accordingly, appeal of the assessee was dismissed. 3. From the facts in the records and discussion in the assessment order and appellate order, it is seen that assessee was co-owner in the scheduled property and had only 50% of share and his share of purchase of property was only Rs.32,52,000/- which was below the threshold of limit to deduct TDS. The ld. CIT (A) has noted that in the return of income assessee had declared 100% share. Therefore, TDS was liable to be deducted to the assessee. From the records, which have been reproduced in the appellate order, it is seen that purchase deed was in the name of two persons and both the persons namely, Smt. Seema Singh and Smt. Harinam Singh had jointly purchased the property. It is also borne from the order of the ld. AO that assessee and Smt. Seema Singh were sanctioned loan of Rs.50,00,000/- from the bank and Rs.7,00,000/- was paid in advance. Once there were two co-owners and investment was made individually from their own source, then whether TDS was required to be deducted because threshold for deducting TDS u/s 194IA by a person for purchase of property is Rs.50,00,000/-. Section 194IA provides that “Any person, being a transferee, responsible for paying resident transferor any sum ITA No.25/VNS/2023 Harinam Singh 3 by way of consideration for transfer of any immovable property then, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque deduct an amount equal to 1% of the stamp duty value.” The word used is “any person” and there is nothing on record that Smt. Seema Singh and Smt. Harinam Singh constituted any entity or AOP. Both these persons have invested individually from their own sources and individually they have invested for the purchase of the property Rs.32,50,000/- each. It is also not discussed as why assessee alone has been held to be liable for TDS and interest for purchase of property of Rs. 65,00,000/-. In so far as assessee is concerned he has purchased the property at Rs.32,50,000/- which was within the limit of Rs.50,00,000/- Therefore, there was no requirement to deduct TDS by the assessee. 4. In the result, appeal of the assessee is allowed. Order pronounced on 29/11/2024. Sd/- (B.R. BASKARAN) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Varanasi; Dated 29/11/2024 KARUNA, sr.ps Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A), Varanasi. 4. CIT ITA No.25/VNS/2023 Harinam Singh 4 BY ORDER, (Asstt. Registrar) ITAT, Varanasi 5. DR, ITAT, Varanasi 6. Guard file. //True Copy// "