TMI Blog2018 (8) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... ty 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. - CIVIL APPEAL NO. 15613 OF 2017, 9365 OF 2017, 12750 OF 2017, 9199 OF 2017, 15615 OF 2017, 15614 OF 2017, 15130 OF 2017, 51 OF 2018, CIVIL APPEAL NO.6115 OF 2018 (Diary No. 29273/2017) - - - Dated:- 2-7-2018 - COMMISSIONER OF INCOME TAX (TDS) II ORS., INCOME TAX OFFICER ORS. AND COMMISSIONER OF INCOME TAX(TDS) KANPUR AND ANR VERSUS ASSISTANT COMMISSIONER OF INCOME TAX (TDS) ORS., UNION OF INDIA ORS., COMMISSIONER OF INCOME TAX (APPEALS) 41 ORS., COMMISSIONER OF INCOME TAX APPEALS ORS., INCOME TAX OFFICER ORS., RAJESH PROJECTS (INDIA) PVT. LTD. Anr., UNITED BANK OF INDIA ANR. AND HDFC BANK LTD., GREATER NOIDA CIVIL APPEAL NO. 6113 OF 2018 (@ SLP NO.16703 2018 @ DIARY NO(S). 9061/2018) Mr. A.K. Sikri And Mr. Ashok Bhushan JJ. For the Appellant(s) : Mr. Balbir Singh, SR. Adv., Mr. Jasmeet Singh, AOR, Mr. Naman Joshi, Adv., Ms. Ruhsheet J. Saluja, Adv., Mr. Hemant Jain, Adv., Mr. S.N. Tayag Rajan, Adv., Mr. Mahinder Singh, Adv., Mr. Nitesh Shrivastava, Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and 2011-2012, the respondent was held as assessee-in-default for non-deduction/ non-deposit of TDS on account of payment of lease rent and interest made to Greater Noida. Consequent demand was raised against the respondents. Aggrieved by assessment order, the respondent-company filed an appeal before the Commissioner of Income Tax-Appeals. Respondents prayed to stay the demand which was refused and recovery proceedings were initiated. Aggrieved by assessment and recovery proceedings emanating therefrom, the respondent-company filed a Writ Petition No. 8085 of 2014 praying for various reliefs including the relief that respondent-company be not treated as assessee-in-default under the Income Tax Act for non-deduction/ depositing the tax at source in respect of payment of rent on lease land and in respect of other charges paid to Greater Noida. Different other entities also filed the writ petitions in the Delhi High Court praying for more or less the same reliefs relating to lease rent payment and for payment of interest to Greater Noida. All the writ petitions involving common questions of law and facts were heard together and were allowed by the Delhi High Court by its judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing annual lease rent, expressed in terms of percentage (e.g. 1%) of the total premium for the duration of the lease, are rent, and therefore subject to TDS. Since the petitioners could not make the deductions due to the insistence of GNOIDA, a direction is issued to the said authority (GNOIDA) to comply with the provisions of law and make all payments, which would have been otherwise part of the deductions, for the periods, in question, till end of the date of this judgment. All payments to be made to it, henceforth, shall be subject to TDS. (3) Amounts which are payable towards interest on the payment of lump sum lease premium, in terms of the Lease which are covered by Section 194A are covered by the exemption under Section 194A(3)(f) and therefore, not subjected to TDS. (4) For the reason mentioned in (3) above, any payment of interest accrued in favour of GNOIDA by any petitioner who is a bank to the GNOIDA, towards fixed deposits, are also exempt from TDS. 5. Aggrieved by the aforesaid judgment of Delhi High Court, Greater Noida, Noida as well as Revenue has filed these appeals. 6. Learned counsel appearing for the Noida and Greater Noida contended that Noid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the submissions of the learned counsel for the parties and perused the records. 11. Insofar as the appeals filed by Noida/Greater Noida are concerned, the principal submission raised by the appellant is applicability of Section 10(20) of the Income Tax Act. Learned counsel for the Noida has submitted that the said issue has already been addressed in detail in Civil Appeal No. 792-793 of 2014. By our judgment of the date in Civil Appeal No. 792-793 of 2014 New Okhla Industrial Development Authority Vs. Commissioner of Income Tax Appeals Ors., we have held that Noida is not a local authority within the meaning of Section 10(20) of the Income Tax Act as amended by the Finance Act, 2002 w.e.f. 01.04.2003. For the reasons given by our judgment of the date in the above appeals, this submission has to be rejected. 12. Now coming to the appeals filed by the revenue, insofar as the question relating to exemption under Section 194A(3) (iii)(f) by virtue of notification dated 24.10.1970, i.e. the exemption of interest income of the Noida, we have already decided the said controversy in CIVIL APPEAL NO._________ OF 2018 (arising out of SLP (C) No. 3168 of 2017) Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whatever name called, under any lease, sublease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,- (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee;] (ii) where any income is credited to any account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. 14. The definition of rent as contained in the explanation is a very wide definition. Explanation states that rent means any payment, by whatever name called, under any lease, sublease, tenancy or any other agreement or arrangement for the use of any land. The High Court has read the relevant clauses of the lease deed and has rightly come to the conclusion that payment which is to be made as annual r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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