News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
From the Courts »
 The ACIT, Central Circle-2, Room No.323, 3rd Floor, ARA Centre, Jhandewalan Extn., New Delhi. Vs. M/s. Majestic Properties (P) Ltd., 1/18B, Asaf Ali Road, New Delhi.a
 DCIT, Circle-Najibabad, Wahid Nagar, Najibabad Vs. Bijnor Urban Co-operative Bank Ltd, Civil Lines, Bijnor
 Harish Kumar, (Huf), 5/21, Shanti Niketan, New Delhi – 110 021 Vs. Dcit, Circle 34(1), New Delhi Room No. 804, 8th Floor Bhawan, Civic Centre, New Delhi – 110 002
 M/s Raman Kumar Sawhney, New Delhi. Vs. ITO, Ward-50(3), New Delhi.a
 M/s. T. V. Today Network Limited F-26, Connaught Place, New Delhi Vs. Addl. CIT Range- 16 New Delhi
 M/s Bhandari Fibretech Pvt.Ltd., S-20, Okhla Industrial Area, Phase-2, Vs. Income Tax Officer, Ward-4(4), New Delhi.
 45 LPA-Opening Associate CFO
 ITD-ITD CEM JV Vs. Commissioner Of Trade & Taxesa
 Chetan Sabharwal Vs. Assistant Commissioner Of Income Tax, Circle 28 (1)
 DCIT, Central Circle-4, New Delhi Vs. M/s. Abhisar Buildwell (P) Ltd., 1711, S.P. Mukharjee Marg, Delhi
 ACIT, Circle-22(2), Room No.226, 02nd Floor, C.R. Building, I.P. Estate, New Delhi Vs. M/s Schneider Electric India (P.) Ltd. 9th Floor, Tower C, Building No.10, DLF Cyber City, Phase-II, Gurgaon,

ACIT vs. Oil and Natural Gas Corporation Ltd (ITAT Mumbai)
December, 15th 2014

S. 194-I: Lease premium and additional Floor Space Index (FSI) charges paid to MMRDA is not "rent" for TDS

It is the real nature of the arrangement or transaction, and not merely the words or phrases employed, even as cautioned by the apex court in Panbari Tea Co. Ltd. (supra), i.e., the substance of the transaction, that is relevant and paramount. The amount charged by MMRDA as lease premium is equal to the rate prevailing as per the stamp duty ready reckoner for the acquisition of commercial premises. There is no provision in the lease agreement for termination of the lease at the instance of the lessee and, hence, for refund of lease premium under regular circumstances.

Even the additional floor space index (FSI), given for additional space, is as per the ready reckoner rate only. The whole transaction is thus for grant of leasehold rights, and only a transfer of property; the lease premium being the consideration for the leasehold rights, which comprise a bundle of rights, including the right of possession, exploitation and its’ long term enjoyment. The charges for FSI also partake the character of a capital asset in the form of Transferable Development Rights (TDRs), so that the owner (of land) had transferred the rights of development and exploitation of land, which are again capital in nature. The restrictive convents toward excavation seek to retain the right of the State to any minerals from land.

Excavation is permitted for the purpose of construction of the foundation of the building, or for executing any work in pursuance of the terms of lease. Similarly, restriction with regard to erection beyond building line was only in conformity with DC Rules, civil aviation rules, BMC and coastal regulations, etc., i.e., are regulatory, and do not define the character of the transaction per se. The same in fact would apply, i.e., be imposed by a local authority while granting permission for construction on freehold land. The tribunal has in fact taken a consistent view for similar transactions with MMRD Ltd., CIDCO Ltd in ITO vs. Naman BKC CHS Ltd. (in ITA Nos. 708 & 709/Mum/2012 dated 12.09.2013) and TRO vs. Shelton Infrastructure Pvt. Ltd. (in ITA No. 5678/Mum/2012 dated 19.05.2014). The decisions relied upon by the A.O. stand also distinguished by the tribunal, as in ITO vs. Dhirendra Ramji Vora (in ITA No.3179/Mum/2012 dated 09.04.2014) and Naman BKC CHS Ltd. (supra).

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions