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TMI Blog2015 (1) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... for additional space, is as per the ready reckoner rate only. The whole transaction is thus for grant of leasehold rights, and only a transfer of property; the lease premium being the consideration for the leasehold rights, which comprise a bundle of rights, including the right of possession, exploitation and its' long term enjoyment. The charges for FSI also partake the character of a capital asset in the form of Transferable Development Rights (TDRs), so that the owner (of land) had transferred the rights of development and exploitation of land, which are again capital in nature. The restrictive convents toward excavation seek to retain the right of the State to any minerals from land. Excavation is permitted for the purpose of constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regional Development Authority (MMRDA) toward leasehold land during the relevant year. And, consequently, the maintainability or otherwise in law of the order u/s. 201(1) and 201(1A) of the Act, since vacated by the first appellate authority. 3. We have heard the parties, and perused the material on record. The Revenue's case is that the 'rent', as defined u/s.194-I of the Act, is very comprehensively defined to include any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for use (either separately or together) of any land, building, plant, machinery, etc. By legal fiction, therefore, the scope of the term 'rent' stands thus extended beyond i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sindhurani Chaudhurani Ors. [1957] 32 ITR 169 (SC); Maharaja Chintamani Saran Nath Sah Deo vs. CIT [1961] 41 ITR 506 (SC); CIT vs. Panbari Tea Co. Ltd. [1965] 57 ITR 422 (SC); R.K. Palshikar (HUF) vs. CIT [1988] 172 ITR 311 (SC); A.R. Krishnamurthy vs. CIT [1989] 176 ITR 417 (SC); CIT vs. Khimline Pumps Ltd. [2002] 258 ITR 459 (Bom), besides by the Special Bench of the Tribunal in the case of Jt. CIT vs. Mukund Ltd. [2007] 106 ITD 231 (Mum) (SB). In all these cases, lease premium or salami was held as transfer of substantial interest in favour of the leasee, i.e., out of the entire bundle of rights that absolute ownership entails. There was, therefore, conferment of a right in the capital field for a price, adverting to section 105 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oward excavation seek to retain the right of the State to any minerals from land. Excavation is permitted for the purpose of construction of the foundation of the building, or for executing any work in pursuance of the terms of lease. Similarly, restriction with regard to erection beyond building line was only in conformity with DC Rules, civil aviation rules, BMC and coastal regulations, etc., i.e., are regulatory, and do not define the character of the transaction per se . The same in fact would apply, i.e., be imposed by a local authority while granting permission for construction on free-hold land. We are in complete agreement with the findings of the ld. CIT(A). The tribunal has in fact taken a consistent view for similar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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