Shankheswar Buildwell Ltd. vs ITO, Ward-3 (TDS)

Parties Involved

Facts Summary

Shankheswar Buildwell Ltd. has appealed against the order of the Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Bengaluru dated 8.3.2024 for the Asst.Year 2014-15 passed under section 250 of the Income Tax Act, 1961. The assessee has raised grounds against the impugned order of the Commissioner of Income Tax (Appeal). The assessee has purchased agriculture land which is not a taxable entity. The land was situated at Virochan nagar, Sanand, Ahmedabad and as per the revenue record, the land is an agriculture land which is not a “capital asset”. Further, the area situated beyond 8 Kms. Of the limits of the municipality limit and also had population less than 10,000/-. The Revenue passed the impugned order treating the assessee as “assessee-in-default” for not deducting TDS under section 194-IA of the Act.…

Legal Issues

• 1. Whether the order u/s 250 of the Act passed by the Ld. CIT (A) is arbitrary, erroneous, contrary to the provisions of law and on facts.
• 2. Whether the order u/s 201(1)/201(1A) of the Act treating appellant as assessee in default u/s 201(1) of the Act for not deducting TDS u/s 194-IA of the Act is without considering the facts of the case and responses filed by the appellant, is bad in law and deserves to be cancelled.
• 3. Whether the Ld. CIT(A) has grossly erred in upholding order passed u/s 201(1)/201(1A) of the Act treating appellant as assessee in default u/s 201(1) of the Act for not deducting TDS u/s 194-IA of the Act amounting to Rs.14,65,080/- without appreciating the fact that it is not required to deduct TDS as appellant has purchased agriculture land.
• 4. Whether the Ld. CIT(A) has grossly erred in upholding interest charged @ 1% u/s. 201(1A) of the Act amounting to Rs.13,00,036/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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