GIRISHKUMAR NATVERLAL PATEL,AHMEDABAD vs. THE ITO, WARD-2, TDS, AHMEDABAD

ITA 2572/AHD/2025Status: DisposedITAT Ahmedabad30 September 2026AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the dispute involves a substantive issue regarding the applicability of section 194-IA of the Act, specifically whether the stamp duty value should be considered the consideration when the assessee claims a lower agreed consideration. Since the Ld. CIT(A) dismissed the appeal for non-prosecution without adjudicating the grounds on merits, the Tribunal, in the interest of justice, set aside the impugned order. The matter was restored to the file of the Ld. CIT(A) for fresh adjudication on merits after providing the assessee with a reasonable opportunity of being heard. The Tribunal did not decide the substantive issue of TDS liability on merits.

What were the facts?

The assessee, Girishkumar Natverlal Patel, is in appeal against the order of the Ld. CIT(A), NFAC, Delhi, dated 04.11.2025, for Assessment Year 2019-20. The appeal challenges the confirmation of TDS liability under section 201(1) of Rs.9,96,003/- and interest liability under section 201(1A) of Rs.7,96,802/-. The Assessing Officer treated the stamp duty value of Rs.9,96,00,300/- as the consideration for an immovable property purchased by the assessee, despite the agreement to sell and sale deed recording the consideration at Rs.5,00,000/-. The assessee had paid stamp duty and conversion charges based on the higher valuation. The Ld. CIT(A) dismissed the assessee's appeal for non-prosecution.

What were the issues?

1. Whether the Tribunal has to decide the substantive issue relating to the applicability of section 194-IA of the Income-Tax Act, 1961, specifically whether the stamp duty value of Rs.9,96,00,300/- can be treated as the consideration for TDS liability when the assessee claims the agreed and paid consideration was Rs.5,00,000/-. Assessee's contention: The assessee argued that the consideration for the property was Rs.5,00,000/-, as agreed and paid under the agreement to sell, and the stamp duty valuation should not be treated as the consideration for TDS purposes. Revenue's contention: The revenue, through the Assessing Officer and subsequently upheld by the Ld. CIT(A), treated the stamp duty value of Rs.9,96,00,300/- as the consideration for the purpose of TDS liability.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 250,Section 194-IA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI RAHUL CHAUDHARY

For Appellant: Ms. Nupur Shah, AR
For Respondent: Shri Drop Singh Meena, Sr. DR
Hearing: 08.07.2026Pronounced: 30.09.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

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The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals) (hereinafter referred to as “Ld. CIT(A)”), National Faceless Appeal Centre (NFAC), Delhi vide order dated 04.11.2025, under section 250 of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year 2019-

20.2.

The grievance raised by the assessee is against the order of the Ld. CIT(A) in confirming the TDS liability u/s 201(1) of the Act of Rs.9,96,003/- and the interest liability u/s 201(1A) of the Act of Rs.7,96,802/- as levied by the Asse

The order continues below.

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