Rent u/s 194(I) ::

Last updated: 07 September 2007

Court :
High Court

Brief :
Held by the Hon"ble court that the use of land starts as the wheels of an aircraft coming into an airport touch the surface of the airfield and likewise the parking of the aircraft also is use of land. Hence the landing and parking fees charged is "rent" within the meaning of Explanation (i) of section 194(I).

Citation :
United Airlines Vs. C.I.T.

Rent u/s 194(I) United Airlines Vs. C.I.T. 2/13/2006 (2006) 152 Taxman 516 (Delhi) Case Fact: Whether landing of aircraft or parking aircraft amount to user of land of airport and the landing fee and parking fee will amount to rent within meaning of Explanation (i) to section 194(I) ? Decision: Held by the Hon"ble court that the use of land starts as the wheels of an aircraft coming into an airport touch the surface of the airfield and likewise the parking of the aircraft also is use of land. Hence the landing and parking fees charged is "rent" within the meaning of Explanation (i) of section 194(I).