ITAT : Sec. 194-IA TDS on property purchases applicable qua each transferee, not sale-deed value

Delhi ITAT holds assessee-individual (transferee) not liable to deduct TDS u/s. 194-IA as the property purchase consideration qua assessee was only Rs. 37.50 lakhs being less than Rs. 50 lakhs threshold prescribed u/s. 194-IA(2), quashes TDS default proceedings u/s. 201(1)/(1A) for AY 2014-15; Assessee had jointly purchased an immovable property with other family members vide single registered sale deed, noting that the total consideration as per sale deed was Rs. 1.5 Cr. (of which assessee’s share was Rs. 37.50 lakhs, being 1/4th un-divided equal share of the property), AO had held assessee in default u/s. 201(1) for not deducting TDS @ 1% as per Sec. 194IA; ITAT holds that Sec. 194-IA (as introduced by Finance Act, 2013) is applicable only with respect to the amount related to each transferee and not with reference to the amount as per sale deed, cites Memorandum explaining Finance Bill, 2013 provisions; States that each transferee is a separate income tax entity therefore, the law has to be applied with reference to each transferee; Since the sale consideration w.r.t. each transferee is less than Rs. 50 lakh, ITAT concludes that Sec. 194-IA was not applicable.:ITAT