Case Law Details
Nagarjuna Oil Corporation Ltd. Vs ACIT (Madras High Court)
The issue under consideration is whether payment for the acquisition of leasehold rights over immovable property is rental income and hence eligible for TDS u/s 194I ?
High Court states that it is clarified that lump sum lease premium or one-time upfront lease charges, which are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of section 194-I of the Act. Therefore, such payments are not liable for TDS under section 194-I of the Act. In view of the aforesaid agreed position between the parties, the present appeals filed by the Assessee are liable to be allowed. HC respectfully follow the judgment of the Coordinate Bench of this Court in the case of Foxconn India Developer (P.) Ltd. and allow the appeals of the Assessee and answer the aforesaid questions in favour of the Assessee and against the Revenue.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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