https://www.taxtmi.com/caselaws?id=259990 A lump-sum lease premium paid upfront for acquiring long-term leasehold rights in land was treated as a capital payment, not "rent" under section 194-I of the Income-tax Act. Because the payment was for acquisition of rights rather than periodic use of land, no tax deduction at source arose on that amount. In the absence of a duty to deduct tax, the assessee could not be treated as an assessee in default under section 201. Restrictive clauses in the lease deed, including transfer and development conditions, were held not to change the essential character of the premium into rent. en-us Wed, 13 May 2015 00:00:00 +0530 Thu, 28 May 2015 08:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=259990 A lump-sum lease premium paid upfront for acquiring long-term leasehold rights in land was treated as a capital payment, not "rent" under section 194-I of the Income-tax Act. Because the payment was for acquisition of rights rather than periodic use of land, no tax deduction at source arose on that amount. In the absence of a duty to deduct tax, the assessee could not be treated as an assessee in default under section 201. Restrictive clauses in the lease deed, including transfer and development conditions, were held not to change the essential character of the premium into rent. Case-Laws Income Tax Wed, 13 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=259990