TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 44
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....-12, the Assessee made payment of lease rental to NOIDA Authority without deducting the TDS on the payment of lease rental. An order u/s 201(1)/201(1A) of the Income Tax Act, 1961 ('Act' for short) came to be passed on 28/03/2014 by treating the appellant herein as 'Assessee in default' and ordered to pay the tax along with interest. Aggrieved by the order dated 28/03/2014, the Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 20/02/2017, dismissed the Appeal filed by the Assessee. As against the order of the Ld. CIT(A) dated 20/02/2017, Assessee preferred the present Appeal. 3. The Ld. Counsel for the Assessee submitted that the Assessee paid a total lease rental of Rs. 42,67,989/- to NOIDA auth....
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....n dealt by the Hon'ble High Court of Delhi in the case Rajesh Projects (India) reported in 2017(2) TMI-1109. Wherein it is held that the payment made up to the date of the Judgment i.e. 16/02/2017, requires no deduction of TDS from the end of the payee to the NOIDA authority and only after 16/02/2017, the payment made to the authority shall be subject to TDS. The relevant portion of the Judgment of Hon'ble High Court in the case Rajesh Projects (India) (supra) is reproduced as under:- "19. So far as the other issue, pertaining to TDS in respect of interest payments received by GNOIDA is concerned, the provision in question is Section 194A of the Income Tax Act. It reads as follows: 194A. (1) Any person, not being a....
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....uch as, GNOIDA Authority, and others in connection with different cities. The notification and the provision (Section 194A (3)) had been interpreted by the Income Tax Appellate Tribunal in the context of payments made by a Bank to the Ghaziabad Development Authority. In the said judgment (Canara Bank v. Department of Income Tax, ITA No.1359/Del/2014 decided on 07.08.2015) the ITAT held as follows: 11. Adverting to the facts of the instant case, we find that the assessee is a statutory corporation established by means of the UP Industrial Area Development Act, 1976. It has been noticed above from the preamble of this Act that it has been made for development of certain areas in the State into industrial and urban township. ....
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....se of ITO (TDS) v. Branch Manager Jammu & Kashmir Bank Ltd. Vide its order dated 24.4.2012 in ITA No.206 to 210/Asr/2011, the Tribunal has held that payment of interest by the bank to Jammu Development Authority (Jammu) is exempt u/s 194A(3)(iii)(f) and, hence, there can be no liability u/s 201(1) and 201(1A) on the bank and resultantly, the bank cannot be treated as an assessee in default u/s 201(1) and 201(1A). Likewise view has been taken by the Amritsar Bench of the Tribunal in ITO v. the Branch Manager, Jammu, Jammu & Kashmir Bank Ltd., by its order dated 2.7.2012, a copy of which has also been placed on record. All these precedents support the proposition that the payment of interest by banks to the State Industrial Development Author....
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....ital payments; (2) Amounts constituting annual lease rent, expressed in terms of percentage (e.g. 1%) of the total premium for the duration of the lease, are rent, and therefore subject to TDS. Since the petitioners could not make the deductions due to the insistence of GNOIDA, a direction is issued to the said authority (GNOIDA) to comply with the provisions of law and make all payments, which would have been otherwise part of the deductions, for the periods, in question, till end of the date of this judgment. All payments to be made to it, henceforth, shall be subject to TDS. (3) Amounts which are payable towards interest on the payment of lump sum lease premium, in terms of the Lease which are covered by Section194-A ar....
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....n the case of M/s New Okhla Industrial Development Authority, Greater Noida Industrial Development Authority vs. Commissioner of Income Tax Appeals &ors. and reported in 2018 (8) TMI 1374-Supreme Court, affirmed the above said direction/observation of the Hon'ble High Court of Delhi in so far as prospective effect of application of provision of Section 194-I of the Act in following manners:- "The very basis of the circular has been knocked out by the amendments made by Finance Act, 2002. Thus, the Circular cannot be relied by Noida/Great Noida to contend that there is no requirement of deduction of tax at source u/s 194-I. Thus, deduction at source is on payment of rent under Section 194-I, which is clearly the statutory liabil....