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2017 (1) TMI 569 - ITAT MUMBAITDS u/s 194I - lease premium paid for acquiring land from CIDCO - Held that:- No tax is deductible at source u/s 194-I on 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 as held by CBDT in its recent circular that such payments are not liable for tax deduction at source under section 194-I of the Act , whereby the CBDT accepted the decisions in the case of The Indian Newspaper Society (2015 (12) TMI 984 - DELHI HIGH COURT ) and Foxconn Developer Limited (2016 (4) TMI 314 - MADRAS HIGH COURT ). The assessee has also made one-time up-front payment being lease premium of ₹ 11,43,36,405/- which was paid by the assessee to CIDCO in respect of Plot No. 5, Sector 2A, Koparkhairane, Taluka-Thane. we hold that there is no default on the part of the assessee in not deducting tax at source u/s 194-I of the Act on one-time up-front payment being lease premium of ₹ 11,43,36,405/- which was paid by the assessee to CIDCO in respect of Plot No. 5, Sector 2A, Koparkhairane, Taluka-Thane and we donot find any infirmity in the order of learned CIT(A) in ordering to delete the demand raised by the Revenue against the assessee u/s 201(1) and 201(1A) of the Act, which order of learned CIT(A) we affirm/sustain. - Decided in favour of assessee
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