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2014 (4) TMI 885 - AT - Income TaxPremium paid for the leasehold rights – liability to deduct TDS u/s 194I of the Act – Held that:- The decision in The ITO (TDS) 3 (5), Versus M/s. Wadhwa & Associates Realtors Pvt. Ltd. [2013 (9) TMI 261 - ITAT MUMBAI] followed - the premium is not paid under a lease but is paid as a price for obtaining the lease, it proceeds the grant of lease - it cannot be equated with the rent which is paid periodically - the payment made to MMRD is also for additional built up are and also for grating free of FSI area, such payment cannot be equated to rent - the word Rent does not include premium paid for additional FSI or lease hold rights - payments were made to MMRDA for additional build up area and lease hold rights - such payments cannot be termed Rent and therefore provisions of section 194 I are not applicable – thus, the order of the FAA upheld – Decided against Revenue. Applicability of section 201 and 201(1A) of the Act – Held that:- The letter dated 04.05.2007 MMRDA had informed the assessee that it had approved the proposal of offer of allotment of the plot of land for construction of two level underground car park with ground above - Lease was offered for a periods of 80 years - the transaction has to be held a lease and that provisions of section 201(1) and 201(1A) are not attracted for non-deduction of tax at source – thus, the order of the FAA set aside – Decided in favour of Assessee.
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