TDS Applicable on Annual Lease Rent to Development Authority: Delhi HC

CIT (TDS)-1 Vs Mahagun (India) Pvt. Ltd. (Delhi High Court) In CIT (TDS)-1 Vs Mahagun (India) Pvt. Ltd., the Delhi High Court dismissed Revenue’s appeals and reaffirmed that annual lease rent paid to Greater Noida Development Authority attracts TDS under Section 194I of the Income-tax Act. The Tribunal had allowed the assessee’s appeal by relying on the earlier High Court ruling in Rajesh Projects (India) Pvt Ltd v. CIT (TDS)-II, which held that lease rent paid for use of land constitutes “rent” within the meaning of Section 194I and is therefore subject to TDS, though the ruling opera...