INDIAN NEWSPAPER SOCIETY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY the court :

(2.) THE petitioner has challenged the legality of an order dt. 29th March, 2011 passed by the AO for asst. yr. 2008-09 holding the petitioner to be an assessee in default under S. 201(1) r/w S. 201(1A) of the IT Act 1961 for failure to deduct TDS on the payment of lease premium to MMRDA under S. 194-I.

(3.) THE petitioner has been allotted certain land by MMRDA at Bandra Kurla Complex on lease for 80 years for the purpose of construction of an office complex. The lease premium of Rs. 88.52 crores was paid on 27th Dec., 2005 and 18th Feb., 2008. A lease deed was executed with MMRDA on 9th April, 2008. The lease deed inter alia contains covenants for the payment of annual rent.