TMI Blog2014 (1) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... as contemplated in section 194-I of the Act, the assessee was not liable to deduct tax at source from the said payment and hence could not be treated as the assessee in default u/s 201(1) & 201(1A) of the Act – Decided against Revenue. - I.T.A. No. 4563 /Mum/2012, C.O. No. 145/Mum/2013 - - - Dated:- 14-8-2013 - Shri P. M. Jagtap, AM And Shri Sanjay Garg, JM,JJ. For the Petitioner : Shri A. V. Sonde Shri A. T. Jain Shri Mahesh O. Rajora For the Respondent : Shri Javed Akhtar ORDER Per Bench. These two appeals preferred by the Revenue against a common order passed by the ld. CIT(A) -14, Mumbai dated 30-04-2012 for assessment years 2010-11 2011-12 involve a common issue and the same therefore have been heard together ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MRDA The assessee filed its reply to show cause notice issued by the A.O. explaining its stand on the issue and after considering and discussing the same in detail, the A.O. held that the assessee was liable to deduct tax at source from the payment made to MMRDA on account of lease premium and treated the assessee in default for failure to do so for the following reasons as summarized by him in his orders passed u/s 201(1) and 201(1A) of the Act: "(i) Payment on account of lease premium is definitely rent within the meaning of section 1941 because rent means any payment by whatever name called under any lease etc. for the use of any land etc. (ii) Since the payment on account of lease premium is included in definition of rent as defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... default u/s 201(1) 201(1A) of the Act. The said submissions made on behalf of the assessee before him were forwarded by the ld. CIT(A) to the A.O. for his comments. In the remand report submitted to the ld. CIT(A), the A.O. offered his comments on the submissions made on behalf of the assessee. After considering the submissions made on behalf of the assessee and the comments offered by the A.O. on the said submissions in the remand report as well as the material available on record, the ld. CIT(A) found that a similar issue involving identical facts and circumstances was considered and decided by him in detail vide his order passed in the case of Shree Naman Developers Ltd. Accordingly, following the decision in the case of Shree Naman De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions, perused the order of the lower authorities and the material evidence brought on record in the form of paper Book and the judicial decisions relied upon by the rival parties. The entire grievance revolves around the premium paid by the assessee to M/s. MMRDA Ltd. for the leasehold rights acquired by the assessee through the lease deed dt. 22nd November, 2004. It is the say of the Revenue that this lease premium was liable for deduction of tax at source failing which the assessee is to be treated as assessee in default. It is the say of the assessee that such lease premium is in the nature of capital expenditure and therefore there is no question of deduction of tax at source. Further, the said lease premium does not come within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Jurisdictional High Court in the case of Khimline Pumps Ltd. (supra) squarely and directly apply on the facts of the case wherein the Hon'ble Jurisdictional High Court has held that payment for acquiring leasehold land is a capital expenditure. Considering the entire facts in totality in the light of the judicial decisions vis- -vis provisions of Sec. 194-1, definition of rent as provided under the said provision, we do not find any reason to tamper or interfere with the findings of the Ld. CIT(A) which we confirm". 6. As the issue involved in the present case as well as all the material facts relevant thereto are similar to the case of Wadhwa Associates Realtors Pvt. Ltd. (supra) as well as Shree Naman Hotels Pvt. Ltd. (supra) decide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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