Puran Mal Parihar, Bhilwara V. ITO (TDS), Bhilwara

ITA 6/JODH/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9246 (ITAT-JODHPUR)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-10-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 18-01-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay; TDS
• Section: 201(1); 194LA

Judgement Text

IN THE I NCOME TAX APPE LLATE TRIBU NAL JOD HPU R BE NCH, J OD HPU R BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA No. 06/Jodh/2022 (ASSESSMENT YEAR- 2015-16) Puran Mal Parihar 8-N-1 R C Vyas Colony, R C Vyas Colony Bhilwara Vs Income Tax Officer, TDS, Bhilwa ra (Appellant ) ( Respondent) PAN NO. AVJ PP 5602 M SA No. 01/ Jo dh/2022 (Arising out o f ITA No. 06/Jodh/2022) (ASSESSMENT YEAR- 2015-16) Puran Mal Parihar 8-N-1 R C Vyas Colony, R C Vyas Colony Bhilwara Vs Income Tax Officer, TDS, Bhilwa ra (Appellant )( Respondent) PAN NO. AVJPP 5602 M Asse ssee ByShri Rajendra Jain (Adv.) Revenue By Shri Ven katesh V. SR. D.R. (JCIT) Date of hearing 01/11/2022 Date of Pro nounce ment 01/11/2022 O R D E R PE R: B.R. BASKARAN, AM The appeal has been filed by the assessee against the order dated 29-12-2021 passed by Ld CIT(A), National Faceless Appeal Centre, Delhi 2 ITA No. 06/Jodh/2022 Shri Puran Mal Parihar vs. ITO, TDS, Bhilwara and it relates to the assessment year 2015-16. The assessee has also filed stay application seeking stay of collection of outstanding demand. 2. In the appeal, the assessee is challenging the demand raised by the AO u/s 201(1) treating the assessee as an ‘assessee in default’. 3. The facts relating to the issue are stated in brief. During the financial year relevant to the assessment year 2015-16, the assessee had purchased a plot from Urban Improvement Trust, Bhilwara for a sum of Rs.51,22,000/-. The AO noticed that the assessee has not deducted tax at source from the above said payment as required u/s 194LA of the Act. Hence the assessing officer treated the assessee as “assessee in default” and accordingly raised a demand of Rs.92,200/-, which consisted of tax demand of Rs.51,220/- raised u/s 201(1) and interest demand of Rs.40,976/- raised u/s 201(1A) of the Act. The Ld CIT(A) also confirmed the demand and hence the assessee has filed this appeal. 4. The Ld Counsel appearing for the assessee submitted that the assessee was under bonafide belief that the tax is not required to be deducted from the sale consideration, since the seller of the plot, viz., M/s Urban Improvement Trust, Bhilwara claimed that its income is exempt 3 ITA No. 06/Jodh/2022 Shri Puran Mal Parihar vs. ITO, TDS, Bhilwara under Income tax Act. In view of subsequent legal developments, it appears to the assessee that the income of M/s Urban Improvement Trust, Bhilwara may not be exempt and hence he should have deducted tax at source from the sale consideration. The Ld A.R submitted that the assessee has ascertained that the seller has taken into account the sale consideration of the plot sold to the assessee while computing total income under the Income tax Act . Accordingly, the Ld A.R submitted that the benefit of proviso to sec. 201(1) should be extended to the assessee. 5. The Ld D.R, however, submitted that the benefit of proviso can be extended only if the assessee has furnished a certificate as stated in the proviso. The Ld A.R further submitted that the assessee would be liable to pay interest u/s 201(1A) of the Act as per the proviso to sec.201(1A) of the Act, even if the claim for the benefit as requested by the assessee is accepted. 6. In the rejoinder, the Ld A.R submitted that the assessee shall be furnishing all the documents and certificate mentioned in the proviso to sec.201(1), if an opportunity is given to the assessee. The Ld A.R also agreed that the assessee would be liable to pay interest u/s 201(1A) of the Act. 4 ITA No. 06/Jodh/2022 Shri Puran Mal Parihar vs. ITO, TDS, Bhilwara 7. Having heard rival submissions, we are of the view that, in the interest of natural justice, the assessee may be provided with an opportunity for furnishing necessary details in order to avail the benefit of proviso to sec.201(1) of the Act. Accordingly, we set aside the order passed by Ld CIT(A) and restore all the issues to the file of the AO. The assessee is directed to furnish necessary documents/certificates as required under the proviso to sec.201(1) in order to avail the benefit. After examining those documents and after affording adequate opportunity of being heard to the assessee, the AO may take appropriate decision in accordance with law. 8. Since we have disposed of the appeal itself, the stay application filed by the assessee shall become infructuous. 9. In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. The stay application is dismissed as infructuous. Order p ronounced in the open Court on 1 s t November, 2022. Sd/- Sd.- (SANDEEP GOSAIN) (B . R. BASKARAN) JUDICIAL ME MBER ACC OUNTANT MEMBER 5 ITA No. 06/Jodh/2022 Shri Puran Mal Parihar vs. ITO, TDS, Bhilwara Dated : 01/11/2022 *Ganesh Kr Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR 6. Guard File Assistant Registrar Jodhpur Bench