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2016 (6) TMI 689 - AT - Income TaxTDS u/s 194I - non deduction of tds on amount paid for lease - demand u/s 201(1) and 201(1A) - Held that:- We have observed that the assessee along with his wife Mrs. Kavita Vikram Shah purchased a plot of residential land whereby lease deed for a period of 60 years will be executed in favour of the assessee and his wife for which lease premium has been paid for a sum of ₹ 1,05,80,528/- to CIDCO. Initially , the assessee entered into an agreement to sell dated 24th November, 2009 and the agreement to lease which was registered on 25th November, 2009. After completion of construction of residential building within four years, the lease deed will be executed in favour of the assesse and his wife whereby ownership title/rights shall be granted in favour of the assessee. It is observed that the lease deed will be entered into by the assessee for a period of 60 years for which the payment has been made. See ITO v. Navi Mumbai SEZ Private Limited [2013 (8) TMI 598 - ITAT MUMBAI ] wherein held lease premium paid by assessee is not in the nature of rent as contemplated u/s 194-I of the Act - Provisions of section 194-I of the Act to deduct TDS on the lease premium paid by the assessee is not attracted - Decided in favour of assessee
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