2021 (1) TMI 562 - ITAT DELHI - Income Tax

Head Note / Extract:
TDS u/s 194I - lease premium paid to Mumbai Metropolitan Regional Development Authority (“MMRD") - AO treated the assessee to be in default u/s 201(1)/201(1A) in respect of tax not deducted at source - HELD THAT:- As decided in Central Board of Direct Taxes (“CBDT”, for short) vide Circular No. 35/2016 [F. No. 275/29/2015-IT(B)], Dated 13-10-2016, in which CBDT has taken note of order of Hon’ble Delhi High Court in assessee’s own case [2015 (12) TMI 984 - DELHI HIGH COURT] lump sum lease premium or one-time upfront lease charges, which are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of section 194-I of the Act. Therefore; such payments are not liable for TDS under section 194-1 of the Act. - Decided in favour of assessee.