TMI Blog2014 (10) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of CIT(A) in holding that the lease premium paid by the assessee is outside the purview of section 194I of the Act and the Assessing Officer was not justified in raising the demand under section 201(1) and 201(1A) of the Act. The grounds of appeal raised by the Revenue are thus, dismissed. - Decided in favour of assessee. - ITA No. 2134/PN/2013 - - - Dated:- 27-10-2014 - Shri G. S. Pannu, Accountant Member And Ms. Sushma Chowla, Judicial Member For the Appellant : Shri P.S. Naik For the Respondent : Shri C. H. Naniwadekar ORDER Per Sushma Chowla, JM This appeal filed by the Revenue against the order of CIT(A)-V, Pune dated 05.09.2013 relating to assessment year 2013-14 is against order passed under section 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2013; b. ITO Vs. M/s. Wadhwa Associates Realtors Pvt. Ltd., in ITA No.695/Mum/2012, order dated 03.07.2013 c. ITO Vs. Shree Naman Developers in ITA No.686 687/Mum/2012, order dated 14.08.2013 5. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the order of Assessing Officer and on the ratio laid down by Chennai Bench of the Tribunal in Fox Conn India Develop (P) Ltd. Vs. ITO (TDS) Ward-II(3), Chennai in ITA No.492/Mad/2010, order dated 30.04.2012. 6. We have heard the rival contentions and perused the record. The assessee was an educational society registered under section 12A of the Act. The assessee was running various schools and colleges in the city of Pune. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e default in respect of the TDS payable on such lease rent payment to PCNTDA. Reliance was placed on the ratio laid down by the Chennai Bench of the Tribunal in Fox Conn India Developer (P) Ltd. (supra). The assessee was held to be in default for non-deduction of tax on source under section 194I of the Act on the lease premium paid to PCNTDA and demand under section 201(1) of the Act was raised and interest under section 201(1A) of the Act was charged, raising a demand of ₹ 22,90,585/-. 8. The CIT(A) vide para 8 referred to the preliminary clauses of the agreement entered into between assessee and PCNTDA and pointed out that the lease premium finds mention in the Lease Deed but the said payment of lease premium was a pre-condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Wadhwa Associates in ITA No.695/Mum/2012, vide order dated 03.07.2013, held that TDS was not required to be deducted under section 194I of the Act in respect of payment of lease premium to M/s. MMRD Ltd. 10. In view of above said facts and circumstances, wherein the lease premium was paid to PCNTDA by the assessee as a pre-condition for entering into a lease agreement, the same cannot be said to have been paid consequent to the lease agreement executed between the parties. Further, the CIT(A) has given a finding that stamp duty had been paid on the market value of the plot represented by the lease premium, which has not been controverted by the learned Departmental Representative for the Revenue. Relying upon the ratio laid down by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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