The Raipur Bench of Income Tax appellate Tribunal (ITAT) held that on perusal of the statement of working and the supporting bank statements it is observed that the Home Loan of Rs. 69,00,000/- from HDFC Bank is divided equally between the co-owners but was not supported with any evidence, hence restored the matter to Assessing Officer (AO) for readjudication .
The assessee Jaimeet Sawaria is an individual, along with his father Bharat Sawaria and his mother Smt. Kalpana Sawaria jointly purchased two immovable properties viz. two flats at Raipur. These properties were registered by way of a single sale deed. The aggregate consideration in respect of two flats was fixed at Rs. 1,90,00,000/-. i.e. consideration required to be paid in respect of each flat was fixed at 95,00,000/-.
A Consolidated Purchase deed in respect of two flats was registered with the sub registrar Raipur though, advance payments were given to the seller and on the date of registration entire consideration was paid there on and Tax Deducted at Source (TDS) was deducted only by the appellant, deposited to the government exchequer and Form 26QB was filed accordingly.
The transaction of purchase of two immovable property came for verification before the Income Tax Officer [ITO(TDS)]. The ITO passed an exparte order under Section 201(1A) of the Income Tax Act,1961 determining a demand of Rs. 2,16,995/-, holding the appellant as liable for interest on such late payment of Rs. 26,995/-and late filing fee under the provisions of Section 234E of the Income Tax Act to the extent of rupees 1,90,000/-
Aggrieved by the order of Assessing Officer (AO) the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], which upheld the decision of the AO.
Further aggrieved the assessee filed an appeal before the Tribunal
The Authorised Representative of the assessee demonstrated the fact by submitting a working of bifurcation of payments made by each participant buyer with supporting evidence in the form of copies of bank statements of each participant.
The Bench comprising of Ravish Sood, Judicial Member and Arun Khodpia, Accountant Member observed that on perusal of the said statement of working and the supporting bank statements it is observed that the Home Loan of Rs. 69,00,000/- from HDFC Bank is divided equally between the co-owners but was not supported with any evidence.
The Tribunal set aside orders of the revenue authorities and restored the issue back to the files of AO, to verify with supporting evidence the actual status of the payment of consideration by each co-owner towards each flat/ property and adjudicate the issue afresh in terms of provisions of Section 194IA of the Income Tax Act.
And further ordered that if assessee fails to comply with during the set aside assessment proceedings, AO would be at liberty to pass an order in accordance with law.
Hence appeal of the assessee was partly allowed for statistical purposes.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
