Sarfaraz S. Furniturewalla v. Afshan Sharfali Ashok Kumar (Bombay High Court)

Court: Bombay High Court
Head Notes:

S. 194I : Deduction at source-Rent-Alternative accommodation-Transit rent -Developer or Builder-Development agreement-Hardship Allowance / Rehabilitation Allowance / Displacement Allowance-Not revenue receipt-Not liable to tax-Not liable to deduct tax at source. [S. 4, Art. 226]
On a writ the issue before the Court was as to whether there should be deduction of TDS on the amount payable to Petitioner as “Transit Rent”, by the developer / builder?. The Honourable Court held that the ordinary meaning of Rent would be an amount which the Tenant / Licensee pays to the Landlord / Licensor. In the present proceedings the term used is “Transit Rent”, which is commonly referred as Hardship Allowance / Rehabilitation Allowance / Displacement Allowance, which is paid by the Developer / Landlord the tenant who suffers hardship due to dispossession hence the ‘Transit Rent’ is not to be considered as revenue receipt and is not liable to be tax, as a result there will be no question of deduction of TDS. from the amount payable by the Developer to the tenant. Referred the Judgements of the Tribunal in Delilah Raj Mansukhani (Smt.) ITA No. 3526/MUM/2017 dt. 29-1-2021 (AY. 2010-2011), Ajay Parasmal Kothari in ITA No. 2823/MUM/dt. 3-4-2023 (AY 2013-2014) (2024) 159 570 (SMC) (Mum)(Trib.) (WP No. 2054 of 2024 dt. 15-4-2024)
Sarfaraz S. Furniturewalla v. Afshan Sharfali Ashok Kumar & Ors. (Bom)(HC)
Editorial : Refer, Narayan Devarajan Iyengar v. ITO [ (2023) 201 ITD 503 (Mum)( Trib)]
(Coram : Hon’ble Shri Justice Rajesh S. Patil)

Section(s): 194I
Counsel(s): Adv. Rustom Pardiwala i/b. Adv. Rushab V. Thacker for the Petitioner.
Dowload Pdf File Click here to download the file in pdf format
Uploaded By itatonline
Date of upload: May 4, 2024
One comment on “Sarfaraz S. Furniturewalla v. Afshan Sharfali Ashok Kumar (Bombay High Court)
  1. Anand Pandit says:

    On what date this judgement was given? Detailed judgment need.

Leave a Reply

Your email address will not be published. Required fields are marked *