TaxTMI 
TaxTMI 
2022 (5) TMI 1335
X X X X Extracts X X X X
X X X X Extracts X X X X
....atment of common area maintenance charges (CAM charges) as rent and applying TDS rates at 10% u/s. 194I of the Act instead of 2% u/s. 194C of the Act. The grounds raised by the assessee are reproduced below. I. Characterisation of common area maintenance charges ["CAM charges"] as rent and applying TDS rate at 10% u/s. 1941 of the Act instead of 2% u/s. 194C of the Act 1. The Learned CIT(A) and Learned AD have grossly erred in stating that CAM charges are subject to withholding tax at 10% u/s. 1941 of the Act as against 2% u/s. 194C of the Act. 2. The Learned CIT(A) grossly erred in upholding the view of Learned AO that CAM charges are in the nature of rent. 3. The Learned CIT(A) and the Learned AD failed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned CIT(A) has grossly erred in relying on the CIT(A)'s order in Appellant's own case for AY 2011- 12 without appreciating that the said order has been quashed by the Hon'ble ITAT. II. Erroneous levy of interest u/s. 201(1A) of the Act 11. The Learned CIT(A) and Learned AO have erred in levying interest u/s. 201(1A) of the Act amounting to INR 868,207/- which is consequential in nature." 3. The assessee is a private limited company and is engaged primarily in retailing in ready-made garments, leather products, furniture, toys, baby basics, footwear and other household accessories. The survey u/s. 133A(2A) of the Act was conducted on the registered address of the assessee on 08.03.2018 for the purpose of veri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....missed the claim of the assessee that the assessment order passed by AO was barred by limitation u/s. 201(3) of the Act. 5. The assessee is in appeal before the Tribunal against the order of the CIT appeals. 6. The learned AR submitted that the coordinate bench of the Tribunal in assessee's own case (ITA No.400-405/Bang/2021) for assessment years 2013-14 to 2017-18 had considered the same issue and held in favour of the assessee. 7. The learned DR supported the decision of the lower authorities. 8. We notice that the coordinate bench of the Tribunal in assessee's own case (supra) has held that 14. We have heard the rival submissions and perused the materials on record. The assessee has entered into lease agreement with ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd eighty thousand rupees: Explanation.-For the purposes of this section,- (i) "rent" means any payment, by whatever name called, under any lease, sublease, tenancy or any other agreement or arrangement for the use of (either separately or together) any, - (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee"; 15. From the definition, the term "rent" would include payments for the use of land building land pertinent to b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....x at source u/ss. 201(1)/201(1A) of the Act. On appeal, it was observed by the Tribunal that the CAM charges paid by the assessee did not form part of the actual rent that was paid to the owner by the assessee company. As the facts involved in the case of the assessee before us remains the same as were therein involved in the aforesaid case, therefore, in the backdrop of our aforesaid deliberations, and respectfully following the aforesaid order of the Tribunal, we herein conclude, that as claimed by the assessee, and rightly so, the CAM charges paid by it were liable for deduction of tax at source @2%, i.e., u/s.194C of the Act. We, thus, in terms of our aforesaid observations set-aside the order of the CIT(A) who had approved the order pa....