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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI N.K.CHOUDHRY, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE
O R D E R
Per D.S.Sunder Singh, Accountant Member :
These appeals are filed by the assessees against the orders of the Commissioner of Income Tax (Appeals) [CIT(A)],Hyderabad-10 in No.ITBA/APL/S/250/2019-20/1018595599(1) and ITBA/APL/S/250/ 2019-20/1018594015(1) dated 04.10.2019for the Assessment Year (A.Y.) 2011-12. Since the facts are identical in both the cases, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience. The facts are taken from which are applicable to I.T.A. No.662/Viz/2019 also.
All the grounds of appeal
in this case are related to treating the assessee as assessee in default u/s 201(1) / 201(1A) of the Income Tax Act, 1961 (in short ‘Act’). Brief facts of the case are that Shri G.Adiseshu purchased immovable property from Smt. Doddi Anitha, Non-Resident Indian along with other residents. Since, the payment was made to non- resident, the assessee required to deduct tax u/s 195 of the Act but not made the deduction. The details of transactions of Adiseshu and Venkayamma are as under : Share of Extent & Address of Doc No./Dt.of Market Value S.No. Smt.Doddi the property Registration (Rs.) Anitha (i) By Adiseshu Gunji
1. Vacant site 884/2011 24,00,000 Rs.4,80,000 admeasuring 200 19.02.2011 sq.yards, Survey No.19/2 China Waltair Village (ii) By Venkayyamma Gunji
2. Vacant site 885/2011 24,00,000 Rs.4,80,000 admeasuring 200 19.02.2011 sq.yards, Survey No.19/2 China Waltair Village
The Assessing Officer (AO) also found that the non-residents have not filed returns of income disclosing income from the said transactions. Therefore, the AO issued notice u/s 201 as to why the assessee should not be treated as assessee in default for non-deduction of tax at source u/s 195 and there was no response to notice issued u/s 201 from the assessee. Hence, the AO (ITO, International Taxation) treated the assessee as assessee in default u/s 201(1)/201(1A) and raised the demands in both the cases as under : Date upto Tax u/s Chargeable which Interest 201(1) No. of Total portion of Date of interest u/s @ months payable capital transaction u/s 201(1A) 20.6% of delay (Rs.) gains (Rs.) 201(1A) is (Rs.) (Rs.) calculated 4,80,000 98,880 19.02.2011 26.03.2018 85 84,048 1,82,928
Against the order of the AO, the assessee went on appeal before the CIT(A) and argued that the assessee has not made the payment to the non- resident, however submitted that , the payment was made to GPA Holder of non-resident, hence argued that the provisions of section 195 are not applicable. Therefore, requested to cancel the order of the AO, framed u/s 201(1)/(1A).However, since, the assessee failed to furnish the supporting evidences in respect of the payment made to GPA holder, the Ld.CIT(A) dismissed the appeal of the assessee.
Against which the assessee filed appeal before us. During the appeal hearing, the Ld.AR submitted that the payment was made GPA holder of non-resident who is resident in India. The Ld.AR also filed copy of the sale deed, as per which it is observed that the payment was made to Shri Pampana Appala Narsayya (Uraf) Babu Rao, who happens to be GPA holder of Ms Doddi Anitha. However, this document was not placed before the Ld.CIT(A), therefore, we are of the considered view that the issue needs to be reexamined by the Ld.CIT(A) and decide the issue after verification of the sale deed and payments made to the GPA holder.
The Ld.DR also did not object for remitting the matter back to the file of the Ld.CIT(A). Therefore, we set aside the order of the Ld.CIT(A)and remit the matter back to the file of the Ld.CIT(A) to consider the sale document and decide the appeal afresh on merits taking in to consideration of submissions of the assessee and the decision of this Tribunal relied upon by the assessees. Accordingly, appeals of the assessees are allowed for statistical purpose.
In the result, appeals filed by the assessees are allowed for statistical purpose.
Order pronounced in the open court on 7th April, 2021.
Sd/- Sd/- (एन के चौिरी ) (धड.एस .सुन्दर धसंह) (N.K.CHOUDHRY) (D.S.SUNDER SINGH) न्याधयक सदस्य / JUDICIAL MEMBER लेखा सदस्य /ACCOUNTANT MEMBER Dated : 07.04.2021 L.Rama, SPS आदेश की प्रतितिति अग्रेतषि/Copy of the order forwarded to:- 1. तिर्धाररिी/ The Assessees - (i) Adiseshu Gunji and (ii) Venkayamma Gunji D.No.53-92-08, Chaitanya Nagar, Maddilapalem, Visakhapatnam 2. रधजस्व/The Revenue – Income Tax Officer (International Taxation) Visakhapatnam 3. The Commissioner of Income Tax (IT), Hyderabad 4. The Commissioner of Income Tax (Appeals), Hyderabad 5. तवभधगीय प्रतितितर्, आयकर अिीिीय अतर्करण, तवशधखधिटणम/DR, ITAT, Visakhapatnam 6.गधर्ाफ़धईि / Guard file आदेशधिुसधर / BY ORDER // True Copy //
Sr. Private Secretary ITAT, Visakhapatnam