Separate undivided shares cannot be aggregated for Chapter XX-C threshold when each co-owner sells only a quantified interest.

Separately quantified undivided shares transferred by co-owners under one agreement were treated as distinct transactions for Chapter XX-C purposes. The court note states that the heirs had acquired vested shares, a family arrangement fixed definite shares, and each vendor thereafter dealt only with his or her own undivided interest. Because the consideration attributable to each individual share was below the statutory threshold, the amounts could not be aggregated merely because a single sale deed was contemplated. On that basis, Chapter XX-C was held inapplicable and the pre-emptive purchase order was quashed.

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Issues: Whether the transfer of separately quantified undivided shares by co-owners could be aggregated as one transaction so as to attract Chapter XX-C of the Income-tax Act, 1961 and justify pre-emptive purchase under section 269UD(1).

Analysis: On the death of the original owner, the heirs acquired vested and quantified shares in the property. A family arrangement subsequently allotted definite shares to each of the co-owners, and thereafter each held and dealt with only his or her own undivided share. The agreement, read as a whole, showed that what was agreed to be sold was the separate undivided interest of each vendor and not a single composite transfer of the entire property. Since the value of each individual share was below the statutory limit, the collective consideration could not be used to invoke Chapter XX-C.

Conclusion: Chapter XX-C was not attracted, and the order directing purchase by the Central Government could not be sustained.

Final Conclusion: The writ petitions succeeded, and the pre-emptive purchase order was quashed on the footing that the transaction comprised separate transfers of individual quantified shares, each below the statutory monetary threshold.

Ratio Decidendi: Where co-owners transfer only their separately quantified undivided shares under one agreement, the consideration for each distinct transfer must be considered independently for the purpose of the Chapter XX-C threshold, and the transfers cannot be aggregated as one composite transaction merely because a single sale deed was contemplated.

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