On a writ the \u00a0issue before the Court was \u00a0as to whether \u00a0there should be deduction of TDS on the amount payable to Petitioner as \u201cTransit Rent\u201d, 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 \u201cTransit Rent\u201d, 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 \u00a0\u2018Transit Rent\u2019 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. \u00a0Referred the Judgements of the Tribunal in \u00a0\u00a0\u00a0Delilah Raj \u00a0Mansukhani \u00a0(Smt) \u00a0\u00a0ITA No. 3526\/MUM\/2017 dt. 29 -1 -2021 (AY. . 2010-2011), \u00a0Ajay Parasmal Kothari in ITA No. 2823\/MUM\/dt. 3-4 -2023 (AY \u00a02013-2014) \u00a0(2024) \u00a0159 taxmann.com 570 (SMC ) ( Mum) ( Trib) (WP No. 2054 of 2024 dt .15 -4 -2024 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194I : Deduction at source \u2013 Rent \u2013 Alternative accommodation–Transit rent -Developer or Builder \u2013 Development agreement \u2013 Hardship Allowance \/ Rehabilitation Allowance \/ Displacement Allowance,- Not revenue receipt \u2013 Not liable to tax – Not liable to deduct tax at source .[ S. 4 , Art.226 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41909","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aTX","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41909"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41909\/revisions"}],"predecessor-version":[{"id":47677,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41909\/revisions\/47677"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}