TaxTMI 
TaxTMI 
2025 (5) TMI 2136
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....1-12. 2. The Assessee had preferred the said appeal [ITA No. 1016/Del/2020] impugning an order dated 16.01.2020 passed by the Commissioner of Income Tax (Appeals)-38 [CIT(A)], whereby the assessment order passed by the Assessing Officer [AO] under Section 201 (1)/ 201 (1A) of the Income Tax Act, 1961 [the Act], was confirmed. 3. The Assessee is a company engaged in the business of fashion products, including leather accessories, watches and artificial jewellery at Ambience Mall, Vasant Kunj, New Delhi. The said premises belong to Ambience Group, which operates Ambience Mall, Vasant Kunj and Ambience Mall, Gurgaon. Various outlets at the said malls have either been sold or have been licensed. 4. The AO found that Ambience Group received C....
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....de would fall within the meaning of "work" as defined under Section 194-C of the Act. 8. In the aforesaid context, the Revenue has projected the following questions for consideration of this Court: "A. Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is correct in deleting the demand of Rs. 4,41,121/- on account of short deduction of TDS under Section 194-I of Income Tax Act, 1961 as CAM charges are squarely covered under the provisions of section of 194-I and demand of Rs. 4,23,477/- u/s 201 (1A) of the Income Tax Act, without going through the facts of the case." 9. At the outset, it would be relevant to refer to the decision of the learned ITAT in ITA 504/Del/2020. The relevant extract of the sa....
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....t. In our considered view, as the CAM charges are not paid for use of land/building but are paid for carrying out the work for maintenance of the common area/facilities that are available along with the lease premises, therefore, the same could not be characterized and/or brought within the meaning of "rent" as defined in Section 194-1 of the Act. 13. In the backdrop of our aforesaid deliberations, we concur with the claim of the ld. AR that as the payments towards CAM charges are in the nature of contractual payments that are made for availing certain services/facilities, and not for use of any premises/ equipment, therefore, the same would be subjected to deduction of tax at source u/s. 194C of the Act. Our aforesaid view is supported ....