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2018 (8) TMI 1374 - SC - Income TaxTDS u/s 194I - TDS on annual lease rent paid to Greater Noida - Scope of the term Rent - reliance on the Circular issued by the CBDT before amendment to the provisions of the act - Held that:- Noida/Greater Noida is entitled for the benefit of Section 194A(3)(iii)(f) has to be approved. - Held that:- A perusal of the above circular indicate that circular was issued on the strength of Section 10(20A) and Section 10(20) as it existed at the relevant time. Section 10(20) has been amended by Finance Act, 2002 by adding an explanation and further Section 10(20A) has been omitted w.e.f. 01.04.2003. The very basis of the circular has been knocked out by the amendments made by Finance Act, 2002. Thus, the Circular cannot be relied by Noida/Greater Noida to contend that there is no requirement of deduction of tax at source under Section 194-I. Thus, deduction at source is on payment of rent under Section 194-I, which is clearly the statutory liability of the respondent-company. The High Court has adjusted the equities by recording its conclusion in Paragraph 20 and issuing a direction in Paragraph 21. Decided against the assessee.
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