https://www.taxtmi.com/caselaws?id=796334 Section 194-IA excludes transfers of agricultural land from the purchaser's tax-deduction obligation. Where the sale deed described the property as agricultural land and no material showed it fell within an excluded category, no tax was deductible. Section 206AA increases the withholding rate only when tax is otherwise deductible; it does not create an independent obligation. Accordingly, treatment of the purchaser as an assessee in default for short deduction was unsustainable. Interest under section 201(1A), being consequential to the failed principal demand, was also unsustainable and deleted. The cancellation of the sale deed and non-encashment of payment cheques further supported the result. en-us Thu, 30 Jul 2026 00:00:00 +0530 Tue, 04 Aug 2026 08:39:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796334 Section 194-IA excludes transfers of agricultural land from the purchaser's tax-deduction obligation. Where the sale deed described the property as agricultural land and no material showed it fell within an excluded category, no tax was deductible. Section 206AA increases the withholding rate only when tax is otherwise deductible; it does not create an independent obligation. Accordingly, treatment of the purchaser as an assessee in default for short deduction was unsustainable. Interest under section 201(1A), being consequential to the failed principal demand, was also unsustainable and deleted. The cancellation of the sale deed and non-encashment of payment cheques further supported the result. Case-Laws Income Tax Thu, 30 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796334