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2020 (10) TMI 415 - ITAT MUMBAITDS u/s 194I - Addition u/s 40(a)(ia) - non-deduction of TDS on rent paid to Royal Yacht Club - benefit of circular CBDT circular No.5 of 2002 dated 30-07-2002 - CIT(A) confirmed the addition by holding that the assessee has paid accommodation charges for the hotel accommodation which is on regular basis from the club without deduction of TDS - HELD THAT:- Accommodation was booked by the assessee in the club not on a regular basis but on casually and occasionally as and when the foreign consultants visits the assessee in connection with assessee’s business. We are quite convinced with the arguments of Assessee that this accommodation is occasional/ casual as no specific accommodation is earmarked and the same is made available to the assessee on the availability basis. In our opinion, the case is squarely covered by the decision of Red Chillies Entertainment Pvt. Ltd. [2017 (3) TMI 333 - ITAT MUMBAI] as held nothing has been brought before us to show that assessee had entered into any prior contract with the hotels for any specific room or rooms for any specific rates or rooms for any specific period. The rooms were hired on as and when available basis at the regular tariff rates subject to the discounts as agreed at the time of booking of rooms. Under these circumstances, the assessee deserves to be given the benefit of the circular No.5 of 2002 dated 30-07-2002 issued by the Board providing that under these circumstances, TDS will not be required to be made u/s 194I. - Decided in favour of assessee.
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