2014 (9) TMI 548

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....The assessee filed a return of income for the Assessment Year 1998-99, which was scrutinized by the Assessing Officer, who found that the assessee had debited a sum of Rs. 13,86,220/- in profit and loss account under the head "manufacturing and other expenses" as equipment hire charges. The Assessing Officer noticed that the aforesaid amount was paid as rent for use of the factory premises owned b....

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....leted. The Tribunal held that the assessee was not liable to deduct tax at source under Section 194-I of the Act. The Department, being aggrieved by the order of the Tribunal, has filed the present appeal under Section 260A of the Act, which was admitted on the following questions of law:           "1. Whether on the facts and circumstances of the ca....

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....d paid the rent accordingly." We have heard Sri Shambhu Chopra, the learned counsel for the appellant. The agreement entered between the assessee and M/s Usha Udyog Ltd. indicated that the assessee was required to carry on re-rolling work in the factory of M/s Usha Udyog Ltd. for which a rate was fixed @ Rs. 200/- per metric ton on the raw material produced by them and that the agreement ind....

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....ue of a cheque or draft or by any other mode, whichever is earlier, deduct income tax thereon at the rate of- (a) fifteen percent if the payee is an individual or an HUF; and (b) twenty percent in other cases: Provided................................. Explanation:- For the purposes of this section,- (I) "rent" means any payment, by whatever name called, under any lease, sub-lease, t....