ITO (TDS) RG 2(3), MUMBAI V. MAHAVIR IMPEX, NAVI MUMBAI

ITA 2344/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3900 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-06-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 25-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANDHIR GUPTA
• Assessee Lawyers: SUBODH RATNAPARKHI
• Section: 90

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER. ITA. NO. 2344/MUM/2013 (ASSESSMENT YEAR:2010-11) INCOME TAX OFFICER (TDS), RANGE-2(3), MUMBAI APPELLANT VS. M/S. MAHAVIR IMPEX, 66, MAHAVIR CENTRE, PLOT NO.77, SECTOR-17, VASHI, MUMBAI-400 703 RESPONDENT PAN: AAQFM5730K /BY APPELLANT : SHRI RANDHIR GUPTA, D.R. /BY RESPONDENT : SHRI SUBODH RATNAPARKHI, A.R. /DATE OF HEARING : 03.08.2016 /DATE OF PRONOUNCEMENT : 08.08.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-14, MUMBAI, DA TED 31.01.2013 FOR A.Y. 2010-11 ON THE POINT OF DEDUCTI ON OF TDS. ITA NO.2344/MUM/13 A.Y. 10-11 [ITO(TDS) VS. M/S. MHAVIR IMPEX] PAGE 2 2. ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN THE BU SINESS OF BUILDING CONSTRUCTION AND REAL ESTATE DEVELOPMENT. ASSESSEE ACQUIRED PLOT NOS. 89 & 90 AT SECTOR-15, BELAPUR, N AVI MUMBAI, UNDER AGREEMENTS TO LEASE DATED 09.03.2010 FROM CIT Y AND INDUSTRIAL DEVELOPMENT AND CORPORATION (HEREINAFTER CALLED CIDCO), FOR DEVELOPMENT OF A COMMERCIAL COMPLEX. THE TOTAL LEASE PREMIUM PAID TO CIDCO FOR THE ACQUISITION OF THE SAID PLOT WAS AS UNDER: SR. NO. PLOT NO. LEASE PREMIUM AMOUNT (RS.) 1 89/BELAPUR 14,84,71,180/- 2 90/BELAPUR 14,56,11,180/- TOTAL 29,40,82,360/- 2.1 ISSUE IS REGARDING DEDUCTION OF TDS U/S.194I OF THE ACT. ASSESSING OFFICER HAS TAKEN ACTION AGAINST ASSESSEE FOR DEDUCTION OF TDS U/S.194I OF THE ACT. IN APPEAL, C IT(A) GRANTED RELIEF TO ASSESSEE. 2.2 AT THE OUTSET OF HEARING, LD. AUTHORIZED REPRES ENTATIVE POINTED OUT THAT THIS ISSUE AT HAND IS COVERED IN F AVOUR OF ASSESSEE BY THE DECISION OF ITAT, MUMBAI C BENCH IN CASE OF ITO (TDS) VS. M/S. PROGRESSIVE CIVIL ENGINEERS PVT. LTD. IN ITA NO.2930/MUM/2014. NOTHING CONTRARY WAS BROUGHT TO O UR KNOWLEDGE ON BEHALF OF REVENUE. FACTS BEING SIMILA R, SO FOLLOWING SAME REASONING, WE ARE NOT INCLINED TO IN TERFERE IN THE FINDING OF CIT(A) WHO HAS HELD THAT AMOUNT PAID BY ASSESSEE TO CIDCO AS PREMIUM FOR ACQUIRING LEASEHOLD RIGHTS IN RESPECT OF LEASED LAND AND THE SAME IS NOT IN THE NATURE OF RE NT AS DEFINED ITA NO.2344/MUM/13 A.Y. 10-11 [ITO(TDS) VS. M/S. MHAVIR IMPEX] PAGE 3 UNDER THE PROVISIONS OF SECTION 194I OF THE ACT. S O, CIT(A) HAS RIGHTLY GRANTED RELIEF TO ASSESSE. WE UPHOLD THE S AME. 3. IN THE RESULT, THE APPEAL FILED BY REVENUE IS DI SMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 08 TH DAY OF AUGUST, 2016. SD/- SD/- ( RAJESH KUMAR ) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R MUMBAI: DATED 08/08/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE 3. / CONCERNED CIT 4. - / CIT (A) 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. BY ORDER / , / , ,