2020 (5) TMI 410

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....autam, Sr. DR ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the assessee against the order dated 22.02.2019 passed by CIT(A)-40, Delhi, for Assessment Year 2017-18. 2. The ground of appeal is as under:- 1. "That Ld.CIT(A)-40, New Delhi has erred by confirming the action of Assessing Officer regarding denial of credit of TDS of Rs. 13,94,101/- on rental income collected by the appella....

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....-. However, during the course of assessment proceedings, the assessee submitted computation of income wherein income has been declared at NIL after claiming benefit of exemption u/s 11 & 12 of the Income Tax Act. The Assessing Officer observed that the assessee is neither in the field of education nor in the field of medical relief or relief of poor, preserve of environment (including water sheds,....

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....of services in relation to any trade, commerce or business as per the provisions of Section 196, no tax is required to be deducted at source from any interest or dividend or other sums payable to the Government. The rental income pertains to the Government and that it was merely acting as n agent/licensee and was collecting rent on behalf of the Government. The Ld. AR submitted that the Assessing ....

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....ssee was merely collecting the rent. Thus, the rent collected by the assessee is definitively its income and rent paid back to the Government is its expenses. It is a lease in & lease out agreement/understanding. Therefore, on the rent paid to the assessee by the tenants, tax is deductible under Section 194I of the Income Tax Act, 1961. As assessee pays the same to the Government, it does not need....