2023 (2) TMI 1458

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....f the Assistant Commissioner of Income-tax, Circle 73(1), Delhi (herein after referred to as 'Ld. TDS AO') treating that the appellant had defaulted in the deduction of taxes at source on common area maintenance charges. 1.1 That in facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the order u/s 201(1)/201(1A) of the Act holding that TDS should be deducted on payment of Common Area Maintenance ('CAM') u/s 1941 of the Act treating the same as payment of rent instead of TDS deducted by the assessee u/s 194C of the Act. 1.2 That on the facts and circumstances of the case and in law, the CIT(A) has erred in not appreciating that the intent of making the payment for common ar....

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..... 2434248/-. 4. Assessee carried the matter before the CIT(A) but without any success. 5. Before us the Counsel for the assessee straightway drew our attention to the decision of this Tribunal in the case of Connaught Plaza Restaurants in ITA No. 993 and 1984/Del/2020 and pointed out that on identical facts the Tribunal has held that provisions of section 194C are applicable in so far as payment of CAM charges are concerned. 6. Per contra the DR could not bring any distinguishing decision in favour of the revenue. 7. We have carefully considered the orders of the authorities below. The undisputed fact is that the impugned payment is not rent but common area maintenance charges paid by various tenants/ owners of the shop to the m....

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.... 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 by the order of the ITAT, Delhi in the case of Kapoor Watch Company P. Ltd. vs. ACIT in ITA No.889/Del/2020. In the aforesaid case, the genesis of the controversy as in the case of the assessee before us were certain proceedings conducted by the Department in the case of Ambience Group (supra) to verify the compliance of the provisions of Chapter XVII-B of the Act. On the basis of the facts that had emerged in the course of the proceedings, it was gathered by the Department that the owners of the malls in addition to the rent had been collecting CAM charges from the lessees on which TDS was deducted....