INCOME TAX OFFICER Vs. NEMICHAND BHANDARI ASSOCIATES

JUDGEMENT

(1.) THE captioned appeal by the Revenue is directed against an order of the Commissioner of Income Tax (Appeals) -V, Pune dated 30.10.2013 which, in turn, has arisen from an order dated 22.11.2012 passed by the Assessing Officer u/s. 201(1)/201(1A) of the Income -tax Act, 1961 (in short "the Act") pertaining to the assessment year 2012 -13.

(2.) IN this appeal, Revenue has raised the following Grounds of Appeal: - -

(3.) IN sum and substance, the solitary dispute in this appeal is in relation to the stand of the Assessing Officer that assessee was liable to deduct tax at source on payments made to Pimpri Chinchwad New Township Development Authority (PCNTDA) on lease premium paid for a land taken on lease for 99 years. As per the Assessing Officer, assessee having failed to deduct the tax u/s. 194 -I of the Act was to be treated as an assessee in default in terms of section 201(1)/201(1A) of the Act. The CIT(A) has disagreed with the Assessing Officer on this aspect on the ground that the payment of lease premium to PCNTDA in terms of the lease deed for land did not amount to 'rent' within the meaning of section 194 -I of the Act. In coming to such conclusion, he has relied upon the decision of the Mumbai Bench of the Tribunal in the case of Navi Mumbai SEZ (P.) Ltd. in ITA No. 738 to 7741/Mum/2012 dated 12.08.2013. Against such a decision of the CIT(A), Revenue is in appeal before us.