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2014 (7) TMI 854 - AT - Income TaxOrder passed u/s 201(1)/201(1A) – Non-deduction of TDS and interest - Premium for leasehold rights u/s 194I – nature of rent not defined – Held that:- A payment of lease premium do not fall within the realm of "rent" as contemplated in section 194–I - the assessee is not liable for deducting the TDS on payment - the lease premium is capital expenditure to acquire land with substantial right to construct and cover the building complex – Following the decision in ITO (TDS) 3 (5), Versus M/s. Wadhwa & Associates Realtors Pvt. Ltd. [2013 (9) TMI 261 - ITAT MUMBAI] - the lease premium paid by the assessee to MMRDA not being in the nature of rent as contemplated in section 194-I of the Act, the assessee was not liable to deduct tax at source from the said payment and hence could not be treated as the assessee in default u/s 201(1) & 201(1A) of the Act - payment on account of premium represents transfer price of the land on lease hold basis and no part qualifies to fall within the meaning of "rent" as contemplated in section 194–I and, therefore, no deduction of tax at source is required - Decided against Revenue.
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