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2016 (12) TMI 1342 - AT - Income TaxTDS u/s 194I - payment to CIDCO as lease premium - Held that:- Hon’ble Delhi High Court in the case of CIT Vs Indian News Paper Society (2015 (12) TMI 984 - DELHI HIGH COURT) wherein it has been held that lease premium paid to MMRDA is capital expenditure. Once that is so, then there is no requirement to deduct TDS. Thus, following the view taken by this Tribunal that such payment of lease premium does not fall within the meaning of “rent” as contemplated u/s 194-I, we hold that the assessee is not liable to deduct TDS on such payment. The main reason being that the lease premium was paid to acquire plot of land with substantial rights so as to become the owner of the plot. Once, the payment is for acquisition of land rights and then, the same is to be reckoned as capital expenditure. Thus, we uphold the order of the learned CIT (A) and dismiss the grounds raised by the Revenue. - Decided in favour of assessee
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