TaxTMI 
TaxTMI 
2011 (5) TMI 308
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....ts premises under section 133A of the Act, it was noticed that for the assessment year 2003-04 the assessee had paid an amount of Rs. 2,50,000 to CIDCO Ltd. and in the assessment year 2004-05 the assessee had paid Rs. 8,62,500 to Air India as well as CIDCO Ltd. Both the payments were made in connection with the shooting of the film "Zameen". However, the assessee did not deduct tax from the payments which according to the Assessing Officer the assessee ought to have deducted under section 194-I of the Act. In his view the payments amounted to "rent" within the meaning of the above section and therefore tax was deductible. He therefore passed orders under section 201(1) and section 201(1A) raising a demand for the tax and also levying intere....
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....re was no specific use of the land or building as required by the section in order that the payment may be called "rent". It was submitted that so far as the payment to Air India is concerned, Air India was not in the business of letting out its properties. Our attention was drawn to the letters issued by Air India and CIDCO on 2-5-2003, 9-5-2003 and 21-2-2003 (copies filed), in which the payment has been referred to as "charges" or "administrative charges" and not as "rent". It was alternatively contended that if the tax is paid by the recipients of the amounts, then the default of the assessee can be reckoned only up to that date and this aspect has to be examined by the Assessing Officer while charging interest. In this connection relian....
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....itted that in the case of the payment made to CIDCO there was use of the land for the purpose of shooting the film and therefore the payment clearly amounted to "rent", whereas in the case of payment made to Air India it was for the use of land and building together with the fittings which amounted to cabin crew training mock-up facility and thus the payment amounted to "rent" from which the assessee ought to have deducted tax. Strong reliance was placed on the definition of the word "rent" in Explanation (i) below section 194-I, as it stood prior to the substitution made with effect from 13-7-2006. 6. We have carefully considered the facts and the rival contentions. So far as the payment of Rs. 1,50,000 made to CIDCO on 20-2-2003 is conce....
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....has been granted to the assessee for shooting the film on the roads of Kharghar Node and the assessee was also allowed to land a helicopter on the vacant space for one day. There can be no doubt that the payment is for the use of the land. It is therefore "rent" within the meaning of the section and the assessee ought to have deducted tax accordingly. We therefore uphold the orders passed by the revenue authorities for the financial year 2002-03 (Assessment Year 2003-04) in ITA No: 2496/Mum/2010. The appeal is dismissed. 7. As regards the next year, the dispute is with regard to the payments made to Air India. The letter dated 2-5-2003 issued by Air India shows that the payment is for shooting the film "Zameen" at Air India's cabin crew tr....