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2016 (1) TMI 566 - AT - Income TaxTDS u/s 194I - non deduction of TDS on the amount paid to the lessor towards lease premium - whether the said amount paid was not in nature of rent covered u/s 194I? - CIT(A) delted the addition - Held that:- We have observed that the assessee company has made payment to CIDCO towards lease premium for plot no 166 in Sector 27 of Belapuron on 5.5.2009 which is leased to the assessee company by CIDCO for 60 years , which in our considered opinion is for acquisition of capital asset being long term holding rights in the afore-stated plot. The Mumbai Tribunal in DCIT v. Paradise Infra-con Private Limited (2014 (7) TMI 386 - ITAT MUMBAI ) on identical facts has held that the lease premium to CIDCO is capital expenditure to acquire land with substantial right to construct and could not be considered as rent to be covered u/s 194I of the Act and hence no TDS is to be deducted on the same which we Respectfully follow in the instant appeal as the facts are identical. We hereby affirm the orders of the CIT(A) deleting the additions made by the AO on accounts of defaults u/s 201(1) and 201(1A) of the Act. - Decided in favour of assessee.
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