TaxTMI 
TaxTMI 
2019 (6) TMI 698
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....as business income without appreciating the fact that fit-out hire charges in calculated @ Rs. 25 per sqr. Ft of the property which substantiate that it is in the nature of rent and has no direct nexus with the so called fixture/fillings/equipments. 2. On the facts and in the circumstances of the case and in law the Ld. CIT(A) has erred in treating the income from fit-out hire charges as business income ignoring the facts that on such income TDS has been deducted @ 10% which is applicable for the payment made on account of rent u/s 194 and not any contractual payment for services for which the prescribed rate for TDS is 2% u/s 194C. 3. On the facts and in the circumstances of the case and in law the Ld. CIT(A) has erred in treating th....
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....come from other sources by the Assessing Officer. Thus, the assessee's income was assessed at Rs. 9,36,57,960/-. 4. Being aggrieved by the assessment order, the filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. DR submitted that the CIT (A) erred in treating the income from Fit-out Hire Charges as business income without appreciating the fact that Fitout Hire Charges in calculated at Rs. 25 per square feet of the property which substantiated that it is in the nature of rent and there is no direct nexus with so called fixture/feelings/equipments. The Ld. DR further submitted that the CIT(A) erred in treating the income from fit out higher charges as business income ignoring the fact that on ....
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..... The Ld. AR relied upon the decision of the Hon'ble Delhi High Court in case of CIT vs. K. L. Puri 233 ITR 43. The Ld. AR submitted that the rule of consistency has to be followed. 7. We have heard both the parties and perused the material available on record. From the perusal of the Rent Agreement dated 30/08/2007, it can be seen that it is with the sole purpose for rent in respect of the entire building to the Multi National company IBM. The Fit Out Agreement dated 18/01/2008 was entered between the parties for the sole purpose of smooth running of the business of the lessee and it is totally a separate legal document. Both these agreements does not have any motive as regards the evasion of the tax aspect. In-fact, when we see the Supp....