9911796707
TMI Blog2021 (1) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... such. 1.1 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that since order u/s 201(1)/ 201(1 A) of the Act was beyond the period of six years from the end of financial year in which the payment was made or credit was given by the appellant company in view of the provisions contained in section 201(3) of the Act, therefore order made was barred by limitation. 2. That the learned Commissioner of Income Tax (Appeals) otherwise too erred both in law and facts in upholding the order concluding that the appellant company be "assessee-in-default for a sum of Rs. 1,68,499/- u/s 201(1) of the Act and Rs. 1,43,963/- u/s 201 (1 A) of the Act. 2.1 That finding that "common area maintenance charges are paid by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Watch Company Pvt. Ltd. is in the business of selling and marketing in the retail market of luxury watches of international brands. A Survey Action u/s 133A(2A) of the I. T. Act, 1961, was conducted in the case of Ambience Group by ACIT(TDS) - 73(1), Delhi on 12/02/2018 with the purpose to verify compliance by the assessee company to the provisions of Chapter XVII B of the Income Tax Act,1961. During the course of Survey Action, it was found that the Ambience group operates two malls, namely Ambience, Gurgaon and Ambience Mall, Vasant Kunj. The malls have various units/shops that have been either sold or are rented. It was observed by the Assessing Officer that the group i.e. mall owners have recovered/collected expenses in the form of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid. Thus, the total TDS liabilities u/s 201 (1)/201(1A) was computed at Rs. 3,14, 078/-. 4. Being aggrieved by the assessment order u/s 201(1)/201(1A), the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. As regards to Ground No. 2, 2.1 and 3 relating to issue that the assessee company should have deducted TDS u/s 194-I of the Act as against u/s 194C of the Act on the Common Area Maintenance Charges (CAM) paid by the assessee company. The Ld. AR submitted that undisputed facts are that there is tri-parte agreement between assessee company (tenant), owner and, operation/mainten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that obligation to deduct TDS arises u/s 194-I of the Act only if nature of payment in hands of payee is rent. In the instant case payment is in the nature of maintenance charges undisputedly in hands of payee and once it is the factual position then both legally and logically section applicable is 194C of the Act. The allegation of revenue is based on edifice that sum paid by the payer is rent in hands of landlord who is neither payee nor payer and thus ex-facie the basis is misconceived. The Ld. AR submitted that it is evident from the plain reading of Section 190 that notwithstanding that the regular assessment in respect of any income is to be made in a later assessment year, the tax on such income shall be payable by deduction or colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent which was on record before the Assessing Officer as well as before the CIT(A). These facts were never disputed by the Assessing Officer as well as the CIT(A). The only dispute that arises by revenue that assessee company should deduct TDS on payment made directly to operation/maintenance services providers u/s 194-I of the Act instead of Section 194C of the Act by relying on the judgment of the Hon'ble High Court of Punjab & Haryana in case of Sunil Kumar Gupta vs. ACIT 389 ITR 38 wherein the Hon'ble Court held that maintenance charges must form a part of the rent while calculating the annual value of property u/s 23(1) of the Act for the purpose of Section 22 of the Act. However, in the present assessee company's case, the common area ..... X X X X Extracts X X X X X X X X Extracts X X X X
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