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The ACIT Central Circle -13, Mumbai Versus M/s. Parinee Developers Pvt. Ltd. and Vica-Versa

TDS u/s 194I - assessee paid by the assessee to MMRDA for acquiring lease hold rights and additional FSI for the leased plot - CIT(A) held the payment was not in the nature of rent as defined in Section 194I of the IT Act, and is not liable for TDS - Held that:- A careful reading of the said lease deed transpires that the premium is not paid under a lease but is paid as a price for obtaining the lease, hence it precedes the grant of lease. Therefore, by any stretch of imagination, it cannot be e .....

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BKC. The Development Control Regulations for BKC specify the permissible FSI. Pursuant to such provisions, the assessee became entitled for additional FSI and has further acquired/purchased the additional built up area for construction of additional area on the aforesaid plot. Thus the assessee has made payment to MMRD under Development Control for acquiring leasehold land and additional built up area. - The decision of the Hon’ble Jurisdictional High Court in the case of Khimline Pumps Ltd .....

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M/2014, CO No. 116/MUM/2015 - Dated:- 17-8-2016 - SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) For The Appellant : Shri. Dr. Darshi Suman Ratnam For The Respondent : Shri. M.P. Lohia & Nikhil Tiwari ORDER PER RAM LAL NEGI, JM The present appeal and Cross Objection have been preferred by the Revenue and the assessee respectively against order dated 14/03/2014 passed by the Ld. CIT(A)-37, Mumbai for the Asst. year 2010-11. Since the appeal and cross objection pertain to the same assessee .....

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short The Act ) determining the total income of ₹ 1,77,04,05,282/- after inter alia making disallowance of ₹ 51,32,63,248/- towards lease rent payment made to MMRDA. The assessee challenged the assessment order before the CIT(A). The Ld. CIT(A) allowed this ground of appeal of the assessee and deleted the disallowance made u/s 40(a)(ia) of the Act. Against the said order the revenue is in appeal before the Tribunal. 2. The revenue has challenged the impugned order dated 14/03/2014 p .....

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appreciating that, the amended definition of rent in Explanation to section 1941 w.e.f. 13/07/2006 is comprehensive and includes any payment by whatever name called under any lease, sublease, tenancy or any other arrangement. 3. At the outset, the Ld. Counsel for the assessee submitted that the issues involved in the present appeal have been decided in favour of the assessee and against the revenue by the ITAT Mumbai in assessee s own cases ITA No 1734/Mum/2012 for the A.Y. 2008-09 and ITA No 44 .....

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ed that since each and every case is required to be decided on its own merit, the AO has rightly made the disallowance in question and the Ld. CIT has wrongly allowed the appeal of the assessee. 5. We have heard the rival submissions and perused the documents carefully in the light of the respective contentions of the parties. We have noticed that the coordinate Bench of the Tribunal has decided the identical issues in favour of the assessee in assessee s own cases referred above, by following t .....

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(MMRDA) for additional built up area. According to AO such payment made by the assessee is in the nature of rent for the use of land, therefore, the assessee was required to tax under section 194I of the Act. Accordingly, vide order dated 29/3/2011 passed under section 201(1) and 201(1A) the assessee has been fastened with the tax liability as under: Tax under section 201 - ₹ 58,95,94,618/- Interest U/s. 201(1A) - ₹ 23,58,37,848/- Ld. CIT(A) has deleted such addition made by the AO. .....

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of order passed in the case of ITO vs. M/s.Wadhawa & Associates Realtors Pvt. Ltd.(supra) is as under: 9. We have considered the rival submissions, 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. November .....

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d as exhibited from page-1 to 42 of the Paper Book. A careful reading of the said lease deed transpires that the premium is not paid under a lease but is paid as a price for obtaining the lease, hence it precedes the grant of lease. Therefore, by any stretch of imagination, it cannot be equated with the rent which is paid periodically. A perusal of the records further show that the payment to MMRD is also for additional built up are and also for granting free of FSI area, such payment cannot be .....

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p area for construction of additional area on the aforesaid plot. Thus the assessee has made payment to MMRD under Development Control for acquiring leasehold land and additional built up area. The decisions of the Tribunal in the case of M/s. National Stock Exchange (supra) and Mukund Ltd (supra) have been well discussed by the Ld. CIT(A) is his order. The decision of the Hon ble Jurisdictional High Court in the case of Khimline Pumps Ltd. (supra) squarely and directly apply on the facts of the .....

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