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Whether TDS Is Required On Lump Sum Premium For Granting Lease?

QUERY: BIDCO which is a State Industrial Development Corporation grants a 99 year lease and collects a lump sum premium for granting the lease amounting to Rs. 40 crores. Yearly rent is Rs. 1,000/- . Whether section 194I is applicable on the lump sum amount?
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In ITO (TDS) v. Navi Mumbai SEZ (P) Ltd. [38 218] the Mumbai Tribunal has taken a view that lease premium paid by the assessee to BIDCO for acquiring leasehold land for a period of 60 years in order to develop a SEZ

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