Transferor-wise threshold under TDS on property purchases prevails; no default arises where each co-owner's share is below limit.

Section 194-IA was held inapplicable where immovable property was purchased from multiple co-owners and the consideration attributable to each transferor was below the statutory threshold. The provision, as applicable for the relevant year, did not permit aggregation of consideration across co-owners; that aggregation amendment was inserted by the Finance Act, 2024 with prospective effect from 01.04.2024. Applying transferor-wise testing, the demand under section 201(1) could not survive because the buyer was not an assessee in default, and consequential interest under section 201(1A) also failed.

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Issues: Whether, for the assessment year under consideration, tax deduction at source under section 194-IA was attracted where the immovable property was purchased from multiple co-owners and the consideration attributable to each co-owner was below the statutory threshold, and whether the consequent demand under section 201(1) and interest under section 201(1A) could survive.

Analysis: The consideration attributable to each transferor was below Rs. 50 lakhs. The provision as applicable to the relevant year did not provide for aggregation of consideration in the case of multiple transferors. The amendment introducing aggregation was inserted by the Finance Act, 2024 with effect from 01.04.2024 and operated prospectively. The cited coordinate bench decisions consistently held that, for periods prior to that amendment, the threshold had to be tested transferor-wise and not on the aggregate sale consideration.

Conclusion: Section 194-IA was not attracted on the facts. The assessee could not be treated as an assessee in default under section 201(1), and the interest levied under section 201(1A) also failed.

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