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TMI Blog2016 (6) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... sed of Rs. 36,25,116/- u/s 201(1) / 201(1A) of the Income Tax Act, 1961 in respect of lease premium payment paid to Pimpri Chinchwad New Township Development Authority (PCNTDA). 2. The learned Commissioner of Income Tax (Appeals) erred in considering the fact that the premium paid to PCNTDA is upfront payment as pre-condition for entering in to lease agreement. 3. The learned Commissioner of Income Tax (Appeals) erred in not appreciating the fact that the deed entered into by the deductor with PCNTDA was not a transfer deed but a lease deed and explanation to section 194I clearly stipulated that any payment by whatever name called under any lease deed / agreement is to be taken as rent for TDS purpose. 3. The learned Authorized Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws taken by various Benches of Tribunal and held that the payment of lease premium made to PCNTDA was a pre-condition for entering into lease agreement and therefore, it could not be said that the same was paid under the terms of lease agreement. Further, the stamp duty had been paid on the market value of plot represented by lease premium, therefore, the demand raised under section 201(1) and 201(1A) of the Act by the Assessing Officer was directed to be deleted. 8. The Revenue is in appeal against the order of CIT(A). 9. We find that similar issue whether tax should be deducted at source under section 194I of the Act and for such non-deduction of tax at source demand should be raised under section 201(1) of the Act and interest under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ser i.e. PCNTDA agreed to execute Lease Deed to convey / transfer / assign the leasehold rights. The Lease Deed authorizes the assessee to build / construct any building on the said plot of land. The case of the assessee was that the payment of premium was a precondition for obtaining the lease rights and it was only after payment of the lease premium, the lease agreement was entered into and bundle of rights were obtained by the assessee. 7. The Assessing Officer held the assessee to be 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 nondeduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vi Mumbai SEZ (P) Ltd. in ITA Nos.738 to 740/Mum/2012 for assessment years 2006-07 to 2009-10, wherein the Tribunal in its order dated 12.08.2013, held that lease premium paid by the assessee to the City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO) for acquiring development and leasehold rights for a period of 60 years, was not required to be subject to deduction at source under section 194I of the Act. Further another Bench of the Mumbai Tribunal in the case of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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