RAKESH GUPTA,KHANNA vs. DCIT/ACIT-TDS, CHANDIGARH
Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
PER RAJPAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 28.02.2025 passed for assessment year 2018-19. 2. The grievance of the assessee is that ld.CIT (Appeals) has erred in upholding the order of AO passed u/s 201(1A) of the Income Tax Act, 1961. A.Y.2018-19 2
With the assistance of ld. CIT DR, we have gone through the record carefully. It emerges out from the record that assessee had purchased a flat from M/s Homeland Buildwell Pvt. Ltd. According to the AO, it failed to deduct TDS u/s 194-IA(1) of the Income Tax Act. It is pertinent to note that two persons have jointly purchased a flat for a consideration of Rs.86,50,000/-. The share of the assessee was Rs.43,25,000/-. The AO was of the view that on payment of consideration more than Rs.50 lacs, purchaser is required to deduct TDS @ 1% of the consideration. The stand of the assessee is that his share was only Rs.43,25,000/- which is less than the prescribed limit of Rs.50 lacs and therefore, he was not supposed to deduct the TDS. In support of this contention, reliance was placed on the order of the ITAT, ITA No.77 & 78/JP/2018. This appeal was decided on 08.06.2018. In this order, the Tribunal has held that where property is being purchased under joint ownership and each purchaser’s share does not exceed Rs.50 lacs, then Section 194-IA is not attracted. A.Y.2018-19 3
On due consideration of this aspect, we are of the view that assessee was not under obligation to deduct TDS and therefore, he cannot be held in default u/s 201(1)/201(1A) of the Income Tax Act. Both the orders are, accordingly, quashed. 5. In the result, appeal is allowed. Order pronounced on 12 th Nov.,2025. (MANOJ KUMAR AGGARWAL) VICE PRESIDENT
“Poonam”
आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to :
अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File
सहायक पंजीकार/