TaxTMI 
TaxTMI 
2023 (3) TMI 850
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....al, they were heard together and being adjudicated by a common order. 3. In ITA No. 7290/Del/2019, following grounds have been raised by the assessee: "1. That on the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in holding that Common Area Maintenance ('CAM') charges paid by the Appellant are in the nature of rent and are liable to TDS u/s 194I of the Act. 2. That on the facts and circumstances of the case and in law, the Ld. CIT (A) has failed to appreciate that the CAM charges paid are towards services in relation to common area which is not in the possession of the Appellant and comprise services like cleaning, maintenance, upkeep, security, air conditioning, landscaping, signages, water,....
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....in ignoring that CAM charges, whether paid to independent service providers or developer/ owner, constitute approximately the same percentage of rent." 4. The similar issue involving deduction of TDS on rent and CAM charges stands adjudicated by the order of the Tribunal in the case of Yum Restaurants India (P.) Ltd. in ITA No. 1115/Del/2020 for A.Y. 2012-13 vide order dated 03.10.2022. 5. For the sake of ready reference and completeness, the ratio of the said case is reproduced as under: "3. The provisions of TDS on rent are governed by Section 194I and maintenance contract are governed by Section 194C of the Income Tax Act, 1961. In this backdrop of the provisions of the Act, the affairs of the assessee are examined. As per....
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....ut to the assessee. These arguments are not acceptable because the common area and other services provided by the lessor are also enjoyed by the appellant along with the specified area. As per the same agreement, the appellant is required to pay lease rent as well as CAM charges. It is also noticed that there is no distinction between CAM charges and lease rent payments except, for raising separate invoices. The Explanation below section 1941 which defines "Rent" takes into its ambit any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any (b) building or (c) land appurtenant, to a building (including factory building) or (h) fittings, ....
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.... Airlines Company Ltd. Vs CIT (2015) 377 ITR 372 (SC) is not applicable. I find that this decision is related to payment of lease charges to AAI for landing and takeoff facilities including for parking of the aircrafts. As is clear from the facts of this case, the lease charges were paid for utilizing the serves of airport and not of the premises in essence. Accordingly, I hold that the AO has rightly distinguished the same from the facts of appellant. Hence, the grounds of appeal are dismissed." 6. The undisputable fact in this case is that while the lease rentals are paid based on a fixed percentage on the net revenue, the CAM charges are based on the per sq. ft. area. The observation of the ld. CIT(A) is that the rent b....