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TMI Blog2013 (11) TMI 1743X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 ( the Act hereinafter) for the relevant years. 2.1 The short and the common question involved in this set of appeals, is as to whether the payment made by the assessee, an international airlines, to M/s. Oberoi Flight Services ( OFS for short) for lounging and catering services is rent within the meaning of the term u/s.194I of the Act. 2.2 The background facts of the case are that the assessee-company has entered into an Agreement with OFS for providing lounging services, which includes an assortment of vegetarian, non-vegetarian, hot and cold snacks and alcoholic drinks, to its first class and club class passengers. Treating the same as catering services, the assessee-payer deducted tax at source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the use of any machinery or plant or equipment; and (b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings: Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed [one hundred and eighty thousand rupees: Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he interest thereon. The assessee being successful in appeal; the ld. CIT(A) endorsing its view, the Revenue is in appeal. 3. We have heard the parties, and perused the material on record. 3.1 Clearly, the nature of the services for which the impugned payments stand made is of prime relevance. The Agreement between the two, i.e., the payer and the payee, pursuant to which the impugned payments have been made, is not on record. Surprisingly, there is also no reference thereto in the orders of the authorities below. The nature of the services for which the payments stand made is therefore gathered from and taken as stated in the orders of the authorities below, including the assessee s submissions before them, as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only as, apart and distinct from the lodging facilities, there is a provision of meals and other boarding facilities, besides amenities required for a comfortable leaving. Now, even as the use of the amenities could be considered as toward proper enjoyment of the housing, and thus a part of or toward user of land and building, so as to be covered under the broader definition of the rent , which w.e.f. 01.06.2007 also covers the use of, apart from furniture and fixture, plant or machinery or equipment (albeit at a different rate of TDS), the provision of meals, an integral part of the arrangement, can by no stretch of imagination or by any means be considered as toward the use of land and building. The consideration for other than the meals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon, having been perused by us in deciding the issue before us. The two decisions cited before us uphold different views in respect of landing and parking charges paid by airlines to the airport authority. While the hon ble Delhi high court in United Airlines vs. CIT [2006] 287 ITR 281 (Del), followed by it in CIT vs. Japan Airlines Co. Ltd. [2010] 325 ITR 298 (Del), confirmed the said payment as rent u/s.194I, the hon ble Madras high court has in CIT vs. Singapore Airlines Ltd. [2012] 252 CTR 429 (Mad.), taken a different/contrary view. While the view of the hon ble Delhi high court is based on the fact that the same is nothing but an arrangement for the use of the airport land, coupled with the legal position that the tax statues are to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the foregoing, we, while agreeing in principle that pure lounging facilities reserved through a contractual arrangement by an airlines for a class of its passengers would attract TDS provision for rent, we confirm it to be not so in the case of composite services for a single consideration, as in the instant case, so that the same would fall under the generalized contractual category u/s.194C, as has been considered by the assessee, who thus succeeds. Finally, it may not be out of place to state that the Revenue has not applied itself in the matter. Besides not bringing the full facts to the fore per its orders, with even the relevant Agreement/s being not on record, it has also not considered the assessee s alternate contention that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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