January 2019

Section 194-1A Four persons who purchased immovable property of Rs. 1.5 crore jointly not liable to deduct tax at source since purchase consideration for each person was Rs. 37.5 lakh which was less than the threshold limit of Rs. 50 lakh prescribed in the provisions.

Jagdish D. Shah / Jagdish T. Punjabi
Chartered Accountants

7.  Vinod Soni vs. ITO (Delhi) Members:  H.S. Sidhu (J. M.) Ando.P. Kant (A. M.) ITA No. 2736/Del/2015 A.Y.: 2014-15.  Dated: 10th December, 2018 Counsel for Assessee / Revenue:  Raj Kumar / B.S. Rajpurohit

 

Section 194-1A Four persons who purchased immovable property of Rs. 1.5 crore jointly not liable to deduct tax at source since purchase consideration for each person was Rs. 37.5 lakh which was less than the threshold limit of Rs. 50 lakh prescribed in the provisions.

 

FACTS


The assesse and three of his family members each purchased 1/4th undivided equal shares in an immovable property vide single sale deed for Rs. 1.5 crore. The purchase consideration for each person was Rs. 37.5 lakh. According to the AO, since the value of the property purchased under single sale deed exceeded Rs. 50 lakh, as per section 194 IA(2), the assessee was required to deduct tax at source @1%. For his failure, the AO held the assessee as defaulter u/s. 201(1) and levied a penalty of Rs. 1.5 lakh. The levy was confirmed by the CIT(A). 

 

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