2015 (2) TMI 1230

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.... grounds, we find that the effective issue involved in the appeal is relating to non-deduction of TDS under section 201(1)/201(1A), on the ground that the assessee has not complied with the provisions of section 194-I. 3. The brief facts of the case are that the assessee company is engaged in the business of real estate development and leasing. A survey operation under section 133A of the I.T. Act was carried out by Addl. CIT (TDS) in the case of Mumbai Metropolitan Regional Development Authority (MMRDA) on 09.02.2011 to ascertain the TDS compliance of MMRDA. During the survey it was found that the assessee had made payment amounting to Rs. 3,58,39,905/- on 24.12.2009 and Rs. 7,28,87,534/- on 31.12.2009- towards lease premium and fees fo....

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....e appellant and the orders passed by the AO have been considered by me. It is seen that the facts in the case of the appellant are similar to the facts in the case of Shree Naman Developers Ltd and other cases cited in Para 4.6 above. Hence, it is evident that premium of Rs. 10,87,27,439/- in respect of the leased plot, paid by the appellant for allotment of additional built up area and allotment of staircase, lift, lobbies etc. counted free of FSI is not in the nature of rent as contemplated u/s 194-I of the Act. It is thus also evident that the Appellant was not required to deduct tax at source u/s 194-I of the Income-tax Act, 1961. I hold accordingly. The demands of Rs. 1,37,74,679/- raised by the AO by invoking the provisions of section....