2015 (12) TMI 28

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dha Crown Buildmart Pvt Ltd) to the Lessor (MMRD) was not in the nature of rent, as defined in the Explanation (i) to section 194I of the Act for the purpose of deduction of tax at source. (ii) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in accepting the claim of the assessee that no tax was deductible under section 194I from the payment made by the assessee to MMRD for acquisition of the plot of land on lease form MMRDA. (iii) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not confirming the order of the Assessing Officer treating the assessee as an assessee in default u/s 201(1) in respect of the amount of tax which has not been deducted under sectio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e company had made payment of lease premium of Rs. 405,00,00,000/- to Mumbai Metropolitan Regional Development Authority (MMRDA) for the allotment of plot at Wadala Truck Terminal, Mumbai. The assessee had made payments in two installments i.e. on 25.05.2010 and 23.10.2011 of Rs. 25 crores being the earnest money amount which was subsequently adjusted against lease premium and Rs. 380 crores respectively. The AO held that, the said payments were in the nature of lease rent on which assessee has not deducted tax at source hence there was contravention of provisions of section 194I. 4. Before the AO, the assessee has made a very detailed submission that amount of one time lease payment was in the nature of premium for acquiring the rights in....