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M/S Japan Airlines Co.Ltd vs Commr.Of Income Tax,New Delhi on 4 August, 2015

entered into by the assessee with the society and therefore, the CIT(A) is not correct in stating that there is no agreement. The ld. DR further submitted that as per Clause-14 (Page 51 of paper book) of the agreement dated 30.04.2007 the payment made is termed as "rent" and that as per Clause-15 (Page 52 of paper book), the assessee agreed to deduct TDS as per the applicable provisions of law. Therefore, the ld. DR argued that the assessee itself has agreed that the payment made is towards the rent and therefore, the AO has rightly held that tax needs to be deducted at source under section 194I. With regard to CIT(A)'s findings that there is no use of land and building, the ld. DR submitted that the assessee for the purpose of re-development has taken over the possession of the land and therefore, the payment made by whatever name called become taxable in the hands of the tenants and therefore, the provisions of section 194I is very much applicable. The ld. DR relied on the decision of the Hon'ble Supreme Court of India in the case of Japan Airline Company Ltd. Vs. CIT(A) (ITA No. 9875 of 2013) to submit that the development agreement serves as the lease agreement and the amount paid even if it is termed as a compensation is nothing but rent which attracts deduction of tax at source under section 194I of the Act.
Supreme Court of India Cites 7 - Cited by 13 - A K Sikri - Full Document
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