Lease Premium Paid to CIDCO is a Capital Expenditure, Thus Not Liable to TDS

Revenue raised an appeal against the order of CIT (A) deleting the addition of Rs.35,85,083/- made by the assessing officer.

Brief of the case 6 to 8 lines

In the Case of Income Tax Officer (TDS) Vs. M/s Progressive Civil Engineers Private Limited,  ITAT Mumbai held that Lease Premium payment made to CIDCO is to acquire capital asset being long term holding rights along with right to construct and therefore it is capital expenditure in nature. Thus, same cannot be treated as rent under the preview of Section 194I of the Income Tax

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