Disposed

Sri. K. N. Prakash v. the Senior Sub Registrar

Karnataka HC21 Nov 2024WP/21275/2024

Case brief

AI extract

What is this about?

Petitioner, auction purchaser from a co-operative bank, sought registration of his sale certificate without depositing TDS under Section 194-IA. The court held he must pay the 1% TDS with interest to the Income Tax Department, after which the Sub-Registrar shall register the sale certificate; recovery of the amount from the bank may be pursued separately.

What did the court decide?

Directions: petitioner to pay 1% TDS with interest; Sub-Registrar to register sale certificate on receipt of IT Department certificate; liberty to recover TDS from respondent bank.

Sri. K. N. Prakash Vs the Senior Sub Registrar — Income Tax | Karnataka HC (2024)

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1 - NC: 2024:KHC:48230 WP No. 21275 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21^ST DAY OF NOVEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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WRIT PETITION NO. 21275 OF 2024 (GM-ST/RN)

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BETWEEN:

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SRI. K. N. PRAKASH SON OF LATE NANJEGOWDA, AGED ABOUT 55 YEARS, RESIDING AT NO. 61, 3RD CROSS, KURUBARAHALLI MAIN ROAD, KURUBARAHALLI, BANGALORE-560 079.

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…PETITIONER

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(BY SRI. SATHISH KUMAR J., ADVOCATE)

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AND:

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THE SENIOR SUB REGISTRAR OFFICE OF SUB REGISTRAR, VINOBHA NAGAR, SUDA COMPLEX, SHIVAMOGGA-577 204.

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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THE SHIVAMOGGA DISTRICT CO-OPERATIVE CENTRAL BANK LTD., BALRAJ URS ROAD, SHIVAMOGGA TOWN, SHIVAMOGGA DISTRICT-577 201, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER.

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THE CHIEF COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, QUEENS ROAD, BANGALORE-560 001.

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…RESPONDENTS (BY SRI. NAVEEN CHANDRASHEKAR., AGA FOR R1; SRI. DAYANAND S PATIL, ADVOCATE FOR R2; SRI. ARAVIND V CHAVAN, ADVOCATE FOR R3)

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2 - NC: 2024:KHC:48230 WP No. 21275 of 2024

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE R-1 SUB-REGISTER, TO REGISTER THE DOCUMENT WITHOUT INSISTING FOR DEPOSIT OF TDS U/S 194-IA OF THE INCOME TAX ACT, 1961 AND MAY BE FURTHER PLEASE TO QUASH ENDORSEMENT G£ÉÆÃPÀ:²:EvÀgÉ:27:2024-25 DTD. 22.07.2024 (ANNX-A).

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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ORAL ORDER

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The petitioner was the successful bidder in an auction conducted by the second respondent, and the sale was confirmed in his favour. Subsequently, the sale certificate was issued in favour of the successful bidder concerning the subject property.

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The petitioner presented the sale certificate issued by the second respondent for registration before the first respondent. At that time, the first respondent refused to register the sale certificate, citing that the petitioner had not deducted the mandatory 1% TDS under Section 194-IA of the Income Tax Act. The petitioner’s grievance is that the sale consideration paid to the second respondent included the 1% TDS payable under Section 194-IA of the Income Tax Act.

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NC: 2024:KHC:48230 WP No. 21275 of 2024

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The second respondent contends that the sale consideration did not include the 1% TDS. He further argues that the sale was confirmed in favour of the petitioner for a sum of Rs.25,10,00,000/-, and the said amount did not include the 1% TDS payable to the Income Tax Department. Therefore, the second respondent is not liable to pay the 1% TDS to the petitioner.

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Section 194-IA of the Income Tax Act deals with payments made on the transfer of certain immovable property other than agricultural land. It states that any person, being a transferee, responsible for paying a sum (other than the person referred to in Section 194-LA) to a resident transferor for the transfer of immovable property (other than agricultural land), shall, at the time of crediting such sum to the account of the transferor or at the time of payment of such sum in cash, by cheque, draft, or by any other mode, whichever is earlier, deduct an amount equal to 1% of such sum or the stamp duty value of the property, whichever is higher, as income tax thereon.

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Therefore, the petitioner is liable to pay the 1% TDS along with applicable interest as contemplated under Section 194(1)(A) of the Income Tax Act. If such an amount is paid to the Income Tax Department, the first respondent, upon receipt of the certificate issued by the Income Tax

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NC: 2024:KHC:48230 WP No. 21275 of 2024

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Department, shall register the sale certificate issued in favour of the petitioner.

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It is needless to state that the petitioner is at liberty to initiate proceedings before the appropriate forum for the recovery of the 1% TDS amount from the second respondent if permissible under the law.

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Accordingly, the petition stands disposed of.

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In view of the disposal of the main petition, I.A. No.1/2024 does not survive for consideration and stands disposed of.

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Sd/-

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(HEMANT CHANDANGOUDAR) JUDGE

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Sri. K. N. Prakash v. the Senior Sub Registrar

Case brief

What is this about?

What did the court decide?

Sri. K. N. Prakash v. the Senior Sub Registrar

Case brief

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What did the court decide?

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