2015 (1) TMI 315

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....sment year (A.Y.) 2008-09 vide order dated 30.03.2011. 2. The instant appeal, raising as many as twelve grounds, agitates a single issue, i.e., the exigibility to tax deduction at source (TDS) u/s.194-I of the Act, of the sum, described as lease premium and additional Floor Space Index (FSI) charges, paid by the assessee-company to Mumbai Metropolitan Regional Development Authority (MMRDA) toward leasehold land during the relevant year. And, consequently, the maintainability or otherwise in law of the order u/s. 201(1) and 201(1A) of the Act, since vacated by the first appellate authority. 3. We have heard the parties, and perused the material on record.              ....

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.... in the nature of rent. The restrictive clauses are only standard clauses, regulatory in nature, meant for the proper development of the area, and not to in any way control or curtail the rights acquired by the assessee- leasee. Reliance stands placed on the binding decisions in the case of Raja Bahadur Kamakshya Narain Singh of Ramgarh vs. CIT [1943] 11 ITR 513 (PC); Member for the Board of Agricultural Income Tax vs. Sindhurani Chaudhurani & Ors. [1957] 32 ITR 169 (SC); Maharaja Chintamani Saran Nath Sah Deo vs. CIT [1961] 41 ITR 506 (SC); CIT vs. Panbari Tea Co. Ltd. [1965] 57 ITR 422 (SC); R.K. Palshikar (HUF) vs. CIT [1988] 172 ITR 311 (SC); A.R. Krishnamurthy vs. CIT [1989] 176 ITR 417 (SC); CIT vs. Khimline Pumps Ltd. [2002] 258 ITR ....

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....nly a transfer of property; the lease premium being the consideration for the leasehold rights, which comprise a bundle of rights, including the right of possession, exploitation and its' long term enjoyment. The charges for FSI also partake the character of a capital asset in the form of Transferable Development Rights (TDRs), so that the owner (of land) had transferred the rights of development and exploitation of land, which are again capital in nature. The restrictive convents toward excavation seek to retain the right of the State to any minerals from land. Excavation is permitted for the purpose of construction of the foundation of the building, or for executing any work in pursuance of the terms of lease. Similarly, restriction w....