TMI Blog1996 (3) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... according to the English calendar month. On total computation of the monthly rent, the actual amount is within the ceiling for which the provisions of section 194-I of the Income-tax Act are required to be attracted, As delineated above, the tenancy stood in the name of four persons which can be ascribed in law as a tenancy-in-common. The term " rent " has been attempted to be defined in the section itself and by way of Explanation superadded to section 194-1, the term " rent " has been defined as " 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 (including factory building), together with furniture, fittings and the land appertaining thereto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who is responsible for such payment to the landlord for his occupation, is required to deduct at source 15 per cent. if the payee is (a) an individual or a Hindu undivided family, and (b) 20 per cent. in other cases. Therefore, there is no disproportionate apportionment of the liability of the person responsible for payment to deduct and lower rate of deduction, namely, 15 per cent. is applicable only to the case of an individual and the expression used in the statute is in the singular. There is another alternative which is applicable in the case of a Hindu undivided family. Here, so far as the landlords are concerned, they are stated to have entered into a partition amongst themselves. Nevertheless the landlord remains common, nam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars to be in a fix because of the stand taken by the writ petitioner and in view of the controversy that has arisen it appears that the cloud of such controversy may be clarified this court treats conglomeration of four persons as common within the other cases other than that of an individual or a Hindu undivided family and then in that case the bank will be required to deduct 20 per cent. at source in order to perform its statutory obligation by way of remittance of the deducted amount. Thereafter it is for the group of landlords to deal with the matter with the Income-tax Department with which the bank has no concern. Therefore, this court feels and holds that the bank authorities are right in taking up their stand by invoking the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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