TMI Blog2014 (9) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... plant and machinery - the agreement is related to the use of plant and machinery and not to the use of land and building - the assessee on the basis of the agreement was not found paying rent in respect of use of land and machinery including factory building but was making payment for use of plant and machinery on monthly production basis - the assessee was not liable to deposit tax at source u/s 194-I of the Act on the amount paid by the assessee towards hiring charges on plant and machinery - no case for payment of penalty could be made out against the assessee – Decided against revenue. - Income Tax Appeal No. 87 of 2005 - - - Dated:- 22-8-2014 - Tarun Agarwala and Dr. Satish Chandra, JJ. JUDGEMENT The assessee is a company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was admitted on the following questions of law: 1. Whether on the facts and circumstances of the case the Hon'ble I.T.A.T. was justified in holding that the assessee was not liable to deduct the tax at source u/s 194-I of the I.T. Act on the amount of rent paid by it to M/s Usha Udyog Limited, the owner of the factory building which was being used by the assessee company together with plant and machinery installed therein. 2. Whether on the facts and in the circumstances of the case the Hon'ble I.T.A.T. was justified in holding that there was no use of factory land and building by the assessee and the assessee paid the rent for use of only plant and machinery installed in the factory premises ignoring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided................................. Explanation:- For the purposes of this section,- (I) rent means 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 any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee. In the light of the aforesaid provision, it is apparently clear that the agreement is related to the use of plant and machinery and not to the use of land and building. The Tribunal has given a categorical finding that the assessee on the basis of the agreement was not found paying rent in respect of use of land and machinery inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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