2018 (3) TMI 1338

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....the following grounds:- For the Assessment Year 2010-11 "1. That on the facts & circumstances of the case, the Ld. CIT(A) has erred in holding that premium for acquiring leasehold rights for the leased plot was not rent, whereas the real nature of the payment of the impugned amount by way of "Lease Premium" falls within the purview of sub-clause (i) of explanation to Sec. 194I of the I.T. Act, 1961. 2. That on the facts & circumstances of the case, the Ld. CIT(A) has erred both on facts and in law to appreciate that the issue in question was not capital vs. revenue expenditure, but whether the payment was made for use of the land or not as required u/s. 194 of the Act. 3. That on the facts & circumstances....

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.... of Bandra-Kurla Complex situated and lying in Village KoleKalyan, Tal. Andheri admeasuring 8076.38 Sq. metres, having totalled maximum permissible built up area of 40608 sq. mtrs., including the additional built up area, on the payment of a premium of Rs. 1182,51,22,200/- According to the agreements the amount of premium was to be paid at one time or the assesse may pay in annual instalments with simple interest @10% p.a. on every payment of instalment and also any delayed payment of instalment will attract penal interest at the prevailing prime lending rate decided by the Reserve Bank of India on the total amount due. 5. From the details filed by the assesse it was found that during the year under consideration the assesse company h....

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.... the issue of a cheque or draft or by any other mode, whichever is earlier, shall deduct income-tax thereon at the rate prescribed therein. Since in the present case, we have held that the lease premium paid by the assessee was capital in nature and was not rent, therefore, we are unable to approve the findings of TDS Officer/Assessing Officer that the assessee was liable to deduct TDS on payment of lease premium to MMRDA. At this point, we place reliance on the judgment of Hon'ble jurisdictional High Court of Delhi in the case of Krishak Bharati Cooperative Ltd. vs DCIT (2013) 350 ITR 24 (Del) wherein their lordships held that for premium on acquisition of lease hold rights in the land, lease for 90 years with substantial interest in t....