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2005 (5) TMI 551 - ITAT MUMBAITDS u/s 194C Or section 194-I - contractor/sub-contractor - Payments made by the advertising agents to the hoarding owners - HELD THAT:- Section 194-I provides that a person who is responsible for paying to any person any income by way of rent shall deduct income-tax thereon at the rate prescribed therein. Explanation (i) to section 194-I defines rent to mean any payment by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or building together with furniture, fittings and land appurtenant thereto. In the case before us, the assessee has taken and acquired only the right of displaying advertisement to hoarding sites belonging to others. It is, therefore, clear that what is being used by the assessee in the case before us is only the right of displaying the advertisement. In our view, section 194-I is more appropriately applicable to a case where rent is paid in consideration for the use of any land or building, etc., under any lease, sub-lease, tenancy, etc. In other words, there should be a live link between payment of compensation known as rent and the use of land or building and this live link is by the lease, sub-lease, tenancy, etc. This live link is absent in the case before us. We are, therefore, unable to say that the charges, which were paid by the assessee, were paid in consideration of mere use of any land or building. It was paid for commercial exploitation of display rights. Thus, the order of ld. CIT(A) is confirmed. All the three appeals filed by the revenue are, therefore, dismissed.
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