TaxTMI 
TaxTMI 
2023 (3) TMI 665
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....e Tax Act, 1961 (hereinafter referred as 'the Act') by the AO, (hereinafter referred as the Ld. AO). 2. The assessee has raised the following grounds of appeal:- "1. On the facts and in the circumstances of the case the learned Assessing Officer has erred in law in treating the Common Maintenance Charges as part of rent. 2. The appellant had correctly deducted tax at source at 2 percent on these payments and interference by the learned Assessing Officer for treating it as part of rent and deduction of TDS at 10% is uncalled for, unjustified and dese3rves to be deleted. 3. The learned Assessing Officer has wrongly charged interest u/s 201(1A) of the Income Tax Act." 3. Heard and perused the record. 4. None....
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.... maintenance, M/s. Ambience Facilities Management Pvt. Ltd which is owned by Ambience Group to which the rent was paid. The coordinate bench, on which one of us, the judicial member, was in quorum, in ITA No. 1738/Del/2020 in case of M/s. Johnson Watch Company Pvt. Ltd. Vs. ACIT, vide order dated 9/11/22, has taken into account similar circumstances including the judgment of Sunil Kumar Gupta vs. ACIT (supra) and observed as below:- "7. Now, when the definition of „rent‟ as Explanation of section 194-I is seen it is the „payment‟ made for the „use‟ of certain immovable properties like land or building (including factory building) or land appurtenant to a building (including factory building) or m....
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....but under „the Act‟, they are different head of expenditures of the lessee. The „rent‟ is on account of „use‟ of the property given into a exclusive possession of the lessee for the running of business but the CAM charges are for maintenance of the common areas, used or not used by the lessee. There is no reason to distinguish between the nature of two payments made by the lessee to the lessor if lessor keeps rent to himself and the CAM charges are paid further by the lessor unless there is composite rent, inclusive of the CAM. Which is not the case, as admittedly they are paid under different clauses of the agreement and by separate invoices. 9. In Sunil Kumar Gupta vs. ACIT (2016) 389 ITR 38 (P....
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....were never disputed by the Assessing Officer as well as the CIT(A). The only dispute that arises by revenue that assessee company should deduct TDS on payment made directly to operation/maintenance services providers u/s 194-I of the Act instead of Section 194C of the Act by relying on the judgment of the Hon'ble High Court of Punjab & Haryana in case of Sunil Kumar Gupta vs. ACIT 389 ITR 38 wherein the Hon'ble Court held that maintenance charges must form a part of the rent while calculating the annual value of property u/s 23(1) of the Act for the purpose of Section 22 of the Act. However, in the present assessee company‟s case, the common area maintenance charges was not forming the part of the actual rent paid to the owner by the ....