Allowing the appeal the Court held that lump sum payment made by the assessee for getting a long term lease does not amount to payment of rent and is not adjustable against the annual rent payable by the assessee and therefore, the provisions of section 194I of the Income-tax Act, 1961 will not apply to such circumstances. (AY. 2009-10, 2010-11, 2012-13)
Nagarjuna Oil Corporation Ltd. v. ACIT (2020) 429 ITR 562/ (2021) 277 Taxman 457 (Mad.)(HC)
S. 194I : Deduction at source-Rent-Lump sum paid for getting long lease-Not rent-Tax not deductible at source on such payment.