2024 (2) TMI 835

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....marth Singh Chawla, Adv For the Department : Shri Ajay Kumar Arora, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the ld. CIT(A) - 38, Delhi dated 30.05.2019 pertaining to A.Y 2015-16. 2. The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the disallowance of Rs. 1,08,59,584/- u/s 40(....

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....rned by provisions of Chapter XVII-B of the Act and therefore, no TDS has been deducted. 6. The contention of the assessee did not find any favour with the Assessing Officer who was of the firm belief that the assessee has violated the provisions of section 194-I of the Act and, alternatively, section 194-C of the Act by not deducting tax at source and invoking provisions of section 40(a)(ia) of ....

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....ently stated that minimum guarantee expense is not any payment towards any contract but it is in the nature of compensatory payment for shortfall in room occupancy. It is the say of the ld. counsel for the assessee that the assessee guarantees the hotels for certain minimum occupancy of the rooms and if the occupancy is not achieved, the assessee would compensate the shortfall. 11. The ld. counse....

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....ervices whereas the assessee provides technology, sales and marketing services to the hotels relating to provision of lodging and accommodation services through its platform. 14. The assessee being a service provider assures the minimum benchmarks which the service recipient will receive or expect to receive from service provider. In case such benchmarks is exceeded, then the service fee is payab....