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2012 (4) TMI 170 - HC - Income TaxTDS on rental -fifteen co-owners made investment in the building sharing the rental - executed a registered lease to the Bank paying monthly rent including all taxes - co-owners furnished indemnity bond indemnifying the Bank for the loss - the Bank stopped deduction of tax at source under Section 194-I of the Act - Bank has been paying rent to all the co-owners as per their respective shares by separate cheques - ITO initiated proceedings under Sections 201(1) and 201(1A) as Bank was not justified in stopping the deduction of TDS - revenue stated that Section 194-I of the Act mentions that the tax has to be deducted at source on rentals paid to any person if it exceeds Rs.1,20,000/- in a year - the Bank contested that it had been paying rent to each co-owner separately by cheque and the individual amount paid to each co-owner being less than Rs.1,20,000/- in a year Held that:- If the rent which being paid to any person is less than Rs.1,20,000/- per annum there is no necessity of deducting tax at source - each of the co-owners has a definite share in the building - Section 26 of the Act provides that where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons –Appeal of Revenue failed
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