ORAL ORDER

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.

2. 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.

3. 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.

4. 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.

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

6. 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.

7. Accordingly, the petition stands disposed of.

8. In view of the disposal of the main petition, I.A.

No.1/2024 does not survive for consideration and stands disposed of.