Appeal allowed as CAM charges subject to 2% TDS under section 194C, not 10% under 194-I

The appeal was allowed in favor of the assessee, holding that CAM charges were liable for 2% TDS under section 194C, not 10% under section 194-I. The ITAT Delhi ruled that CAM charges are not rent but contractual payments for services, thus subject to a lower rate of TDS deduction. The orders were set aside, directing the AO to delete the addition made in the assessee's hands.

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Issues involved: The sole issue in this appeal is the confirmation of the demand of TDS plus interest amounting to Rs. 2,20,319/- due to short TDS deduction.

Summary of Judgment:

Issue 1: TDS on CAM Charges
- The assessee argued that TDS should be deducted at 2% u/s 194C, not 10% u/s 194-I for CAM charges.
- The AR highlighted that rent and CAM charges were paid to different entities within the Ambience Group.
- The AO insisted that 10% TDS was applicable to CAM charges under 194-I.
- The ITAT Delhi referred to previous cases and ruled that CAM charges are not rent but contractual payments for services, thus subject to 2% TDS u/s 194C.
- The ITAT set aside the orders, directing the AO to delete the addition made in the assessee's hands.

Conclusion: The appeal was allowed in favor of the assessee, holding that CAM charges were liable for 2% TDS under section 194C, not 10% under section 194-I.

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