Section 194-IA threshold applies per co-owner share on jointly owned property; demand for non-deduction deleted.

Tax deduction under section 194-IA was not required on the transfer of jointly owned immovable property where the sale deed was executed through a power of attorney holder and, in the absence of any contract to the contrary, the consideration was to be apportioned equally between the co-owners. On that basis, each co-owner's share fell below the statutory threshold for deduction, so the provisions did not apply. As the substantive requirement for tax deduction failed, the demand for non-deduction could not stand and the consequential liability under sections 201(1) and 201(1A) was deleted.

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Issues: Whether tax was deductible under section 194-IA on the transfer of jointly owned immovable property where the sale deed was executed by a power of attorney holder and the consideration attributable to each co-owner was below the statutory threshold.

Analysis: The property was jointly owned, and the sale was executed by the power of attorney holder on behalf of the co-owners. The consideration for the entire property was Rs. 60,12,000, but in the absence of any contract to the contrary the consideration had to be apportioned equally between the two co-owners. On that basis, each co-owner's share was below Rs. 50 lakh, which is the threshold below which section 194-IA does not require deduction of tax. As the substantive applicability of section 194-IA failed, the demand raised for non-deduction of tax could not survive. The remaining grounds were rendered academic.

Conclusion: Section 194-IA was held not to be applicable, and the demand under sections 201(1) and 201(1A) was deleted in favour of the assessee.

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