REETU DEVI NANECHA, BHILWARA V. ITO TDS, BHILWARA

ITA 118/JODH/2021

AI Insights

This case involves an appeal by Reetu Devi Nanecha against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which upheld the demands made by the Income Tax Officer, TDS, Bhilwara under sections 201(1) and 201(1A) of the Income Tax Act. The demands were related to the non-deduction of tax and interest on a transaction involving the purchase of immovable property. The primary legal issue was the applicability of Section 194IA of the Income Tax Act, which mandates tax deduction at source for property transactions exceeding Rs. 50 lacs. The assessee argued that her share of the property transaction was below this threshold, and thus, she should not be considered in default.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122744 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 12-12-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Cost of acquisition; TDS
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER 118/Jodh/2021 (ASSESSMENT YEAR- 2015-16) Reetu Devi Nanecha, 3A 38, R.C, Vyas Colony, Bhilwara, Rajasthan Vs The ITO TDS, Bhilwara (Appellant) (Respondent) PAN NO. ACCPN2756J Assessee By Shri Hemant Chhajed, CA Revenue By Shri S.M. Joshi, JCIT-DR Date of hearing 22/03/2023 Date of Pronouncement 24 /03/2023 O R D E R PER: SHRI MANISH BORAD, AM This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre, Delhi (for short ‘’NFAC’’), 2 ITA NO. 118/JODH/2021 SMT. RITU DEVI NANECHA VS ITO, TDS, BHILWARA Delhi dated 20-10-2021 for the assessment year 2015-16 raising therein following grounds of appeal. ‘’1. “The impguend Demands of Rs.31,500 u/s 201(1) and Rs.16,380 u/s 201(1A) are bad in law and on facts of the case, for want of jurisdiction and hence the same kindly be deleted. 2. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.” 2.1 At the outset of the hearing, the ld. Counsel for the assessee submitted that there was a transaction of purchase of immovable property on 3-09-2014 for a consideration of 1.20 crores and the same was carried out by four persons. In the 1/4 th share of the property, the consideration comes to Rs.31.50 lacs in the hands of the assessee. The provisions of Section 1941A of the Act are applicable if the consideration is more than Rs.50.00 lacs and therefore, the assessee should not have been treated as assessee in default u/s 201(1) and 201(1A) of the Act. 3 ITA NO. 118/JODH/2021 SMT. RITU DEVI NANECHA VS ITO, TDS, BHILWARA 2.2 During the course of hearing, the ld. AR of the assessee prayed to quash the order of the ld. CIT(A) 2.3 On the other hand, the ld. DR vehemently supported the orders of the lower authorities. 2.4 We have heard the rival contentions and perused the materials placed on record. We notice that the assessee is an individual and as per facts of the case narrated before us and not disputed by the revenue authority, find that the assessee alongwith 3 other persons purchased an immovable property for a consideration of Rs.1.20 crores on 03-09-2014. The assessee paid 1/4 th share of sale consideration i.e. Rs. 31.50 lacs. The AO treated the assessee in default applying the provisions of section 1941A of the Act by considering the purchase cost of Rs.1.26 crores. We notice that the provisions of Section 1941A of the Act are applicable where consideration for transfer of an immovable property is more than Rs.50 lacs. Since in the instant case, the consideration paid by the assessee is Rs.31.50 lacs, therefore, the provisions of Section 1941A of the Act cannot be invoked. Thus, we fail to find any merit in the 4 ITA NO. 118/JODH/2021 SMT. RITU DEVI NANECHA VS ITO, TDS, BHILWARA findings of the ld CIT(A) and the same is set aside and the demand raised by the AO u/s 201(1) for non-deduction of Tax Rs.31,500/- and interest levied u/s 201(1A) at Rs.16,380/- is deleted. The effective issued in Ground No 1 as raised by the assessee is allowed. 3.0 The Ground No 2 of the assessee is general in nature which does not require any adjudication. 4.0 In the result, the appeal of the assessee is allowed Order pronounced in the open Court on 24 /03/2023. Sd/- Sd/- (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 24/03/2023 *Mishra Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The DR 5. Guard File Assistant Registrar Jodhpur Bench