TMI Blog2017 (1) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer (AO)and the assessee have filed appeal/Cross objections(CO) for the above-mentioned three AY. s raising various grounds. As the issues involved in the appeal/ CO. s. are common so for the sake of convenience we are adjudicating both the matters by a single order. Assessee company is engaged in the business of operation of aircraft and other related activities. ITA/6397/Mum/2014-AY. 2011-12 2. During the course of hearing before us Representatives of both the sides agreed that the issue raised by the AO in the appeal for the year under consideration is covered against him by the order of the Tribunal(ITA. s. 4982-84/Mum/2013 AY. s. 2008-09 to 2010-11 dated 03. 08. 2016). 3. We find that the effective ground of appeal is abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under lease sub-lease or tenancy would be treated as rent . In the second place such a payment made even under any other agreement or arrangement for the use of any land or any building would also be treated as rent . Whether or not such building is owned by the payee is not relevant. The expressions any payment by whatever name called and any other agreement or arrangement have the widest import. Likewise payment made for the use of any land or any building widens the scope of the proviso. A bare reading of the definition of rent contained in the Explanation to section 194- I would make it clear that in the first place the payment by whatever name called under any lease sub-lease tenancy is to be treated as rent . That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low: . the charges fixed by the Airports Authority of India for landing and take-off services as well as for parking of aircraft were not for the use of the land . These charges were for services and facilities offered in connection with the aircraft operation at the airport which included providing of air traffic services ground safety services aeronautical communication facilities installation and maintenance of navigational aids and meteorological services at the airport. The Airport Economics Manual and the International Airports Transport Agreement among contracting States on charges for airport and air navigation services showed that there were various international protocols which mandated that all authorities manning and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry etc. is missing and hence it can safely be held that the assessee had rightly deducted the tax at the rate of 2% as per the provisions of section 194- C of the Act. As far as PSF charges are concerned we want to mention that in the case of Jet Airways (supra) the Tribunal has held as under: The facts under consideration show that the PSF is a statutory liability without demarcating/ earmarking the area taken on the rent nor it is a case of systematic use of land specified for consideration under an agreement which carries the characteristics of lease or tenancy. A mere use of land and payment charged which is not for the use of the land but for maintenance of various services including technical services would not technically brin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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