Case Law Details
Brief of the case:
In the case of ACIT vs. OBC, Mumbai Bench of ITAT observed that the amount paid by the assessee bank (the lessee) to City Industrial Development Corporation (MMRDA) (Lessor) was in the nature of rent as defined u/s 194I of the Act or not, which held yes by CIT (A). ITAT observed the finding of the decision of ITAT Mumbai in case of Navi Mumbai SEZ Pvt. Ltd. vs Income Tax (ITA No.738 to 741/Mum/2012) in detail and held that the provisions of section 194-I are not applicable to the facts of the present appeal to deduct TDS on the lease premium paid by the assessee. Hon’ble ITAT found that the payment to MMRDA is for additional built up area and also for granting fee of FSI and such payments cannot be equated to rent.
Observations made in the case of Nvi Mumbai SEZ Pvt. Ltd. (Supra).
In the deciding the above case tribunal mainly observed the findings of its co-ordinate bench in the case of Navi Mumbai SEZ Pvt. Ltd. (Supra). Hence, it is necessary to go through the findings and observation of this case, which are as following:
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Very useful judgement for professionals in Rajasthan as 2 years back IT Department has made several cases on similar type of transactions of land acquired from RIICO.