violation of
provisions of section 194I by the Assessing Officer and upheld by the
CIT(A) is the only issue raised in the grounds ... park.
Therefore, the assessee company was liable to deduct tax u/s.194I of
the Act. Since the assessee has failed
rent" paid for use of machinery,
plant, machinery or equipment. Section 194I of the Act provides for obligation for
deduction of tax at source ... paying any income by way of rent. For
the purpose of section 194I of the Act, prior to the amendment of the said definition
entire period of lease. The AO after examining
the provisions of section 194I of the I.T. Act as well as terms of
lease deed ... definition of "rent" as per proviso to section 194I of the I.T. Act.
Accordingly, the AO was of the view that
account
of TDS payment made to CWC, CFS BPT, AAI u/s. 194I and without properly
appreciating the factual and legal matrix of the case ... fact that the definition of rent in
explanation (1) to section 194I is very wide in its ambit and includes within its
sweep, payment
lease deed, the AO came to the conclusion that provisions of section
194I of the I.T. Act are applicable in respect of payment ... transaction only for the plot in
question. Therefore, the provisions of section 194I are not applicable.
3. However, the AO was not satisfied with
covered by
the definition of rent as per proviso of section 194I of the Income Tax
Act and TDS u/s.194I was required ... deducted since the 'rent' as
defined in explanation to section 194I clearly makes the case of TDS
default against the lessee
transfer deed but a lease deed and explanation to
section 194I clearly stipulated that any payment by whatever name
called under any lease deed / agreement ... years was nothing but rent and hence, the provisions of
section 194I of the Act were applicable. Accordingly, he raised the demand
under section
nature of rent on
which TDS should have been deducted u/s. 194I . Facts are same for
this year, I therefore hold that action ... deducted on payment to BSNL. He also stated that
TDS u/s. 194I is required only when the payment during the F.Y. exceeds
which
the tax was
deductible
1 Ground Rent paid to Visa Industries 194I 34,94,512/-
Ltd. And Balaji Coke Industries Pvt.
Ltd.
2 Wharfage ... been deducted by the assessee under section
194C and 194I . The details of disallowance and nature of payments are
as follows:-
Sr Nature of Section
give credit for TDS deducted u/s.194J instead of section
194I accordingly recalculate the disallowance on the
proportionate basis out of addition ... give credit for TDS deducted u/s.194J instead o section
194I accordingly recalculate the disallowance on the
proportionate basis out of addition
