Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
‘Transit Rent' cannot be Taxed as 'Revenue Receipt': Bombay HC
Income Tax
In a recent ruling, the Bombay High Court stated that 'Transit Rent' cannot be taxed as a revenue receipt. The petitioner's counsel requested clarification on the order, seeking the deletion of the words "with interest" as the withdrawn amount from the Court of Small Causes would be paid by the client towards compensation/license fee for their residing premises. \r
They argued against TDS deduction from transit rent. The respondent's counsel sought directions for both parties to provide photocopies of their PAN cards for TDS deduction. \r
Section 194I of the Income Tax Act covers TDS on rent, but 'Transit Rent' falls outside this scope, being a hardship allowance for tenants affected by dispossession. Justice Rajesh S. Patil affirmed that Transit Rent should not be considered a revenue receipt and is therefore not subject to tax or TDS deduction.
