Common area maintenance (CAM) charges: whether TDS applies as rent u/s194-I or work u/s194-C; petitions dismissed

The dominant issue was whether common area maintenance (CAM) charges paid by the deductor attracted TDS as "rent" under s. 194-I or as payment for "work" under s. 194-C of the Income-tax Act. The HC held that CAM charges were not consideration for the use of land/building or appurtenant fittings so as to qualify as "rent" under s. 194-I, and instead constituted payments for services/maintenance falling within "work" under s. 194-C; consequently, deduction under s. 194-C was not a short deduction. The SC found no error or illegality in the HC's determination and dismissed the petitions.

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Delay was condoned. On merits, the Supreme Court declined to interfere, holding that "in the facts and circumstances of the case, we find no error or illegality in the order(s) passed by the High Court." Consequently, "the present petitions are, accordingly, dismissed." Any pending application(s), if any, were directed to "stand disposed of."

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