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TMI Blog2024 (5) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... ot to be considered as revenue receipt and is not liable to be tax, as a result there will be no question of deduction of T.D.S. from the amount payable by the Developer to the tenant. Assessee appeal allowed. - RAJESH S. PATIL, J . For the Petitioner : Adv. Rustom Pardiwala i/b. Adv. Rushab V. Thacker. For the Respondent Nos. 1 and 2 : Adv. Zaid Ansari a/w. Adv. Anmol Menion i/b. Zaid S. Ansari Associates. For the Respondent No. 3 : Adv. Manal Dhanani i/b. Cue Legal. JUDGMENT : 1. The papers are allowed to be produced at 2.30 p.m., in view of urgency 2. Mr. Pardiwala has moved this matter seeking a clarification as regards to paragraph No. 10 (viii) of Order dated 2 April 2024. 3. He submits that line No. 11 the words with the interest s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 2823/MUM/(A.Y : 2013-2014) 7. I have heard Mr. Dhanani and Mr. Pardiwala on the issue as to Whether there should be deduction of TDS on the amount payable to Petitioner and Respondent Nos. 1 2 as Transit Rent , by the developer/builder?. 8. For the said purpose, it will be necessary, to consider section 194(I) of the Income Tax Act. Sec. 194(I) of the Income Tax Act, reads as under : Sec. 194(I) - Rent Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident] any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy 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.] [Emphasis Supplied] 8.1. The relevant factor which has to be borne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 19,50,873/- from the developer when the building in which the assessee owned flat went for re-development as per the agreement between the developers and flat owners dated 28.03.2008. The said compensation was paid towards hardship Rs, 13,45,278/-; rehabilitation Rs, 5,90,625/- and for shifting Rs. 15,000/-. We also note that the assessee paid Rs. 18,63,000/- to Joys Developers for acquiring additional area of 138 Sq Ft. It was also noted that the assessee shifted to his own house when the building went for re-development. Now the question before is whether the compensation upon re-development of property towards hardship, rehabilitation and shifting received by the assessee is taxable if the potential TDR/FSI is available to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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