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TMI Blog2023 (3) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... l demand of Rs.29,28,215/- u/s 201(1)/201(1A) of the Income Tax Act, 1961. 2. That on the facts and circumstances of the case, the ld. CIT(A) has grossly erred in confirming demand thereon u/s 201(1) of Rs.15,43,276/- towards short deduction of TDS on CAM charges by confirming CAM charges as rent charges and enforcing to deduct TDS u/s 194I on whole amount instead of TDS u/s 194C. 3. That on the facts and circumstances of the case, the ld. CIT(A) has grossly erred in confirming of demand u/s 201(1A) of Rs.13,84,939/- towards interest on short deduction of TDS on CAM charges." 3. Brief facts of the case are that a survey u/s 133A(2A) of the Income Tax Act, 1961 was carried out in the case of Ambience group by the ACIT(TDS)-73(1), New De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any (b) building or (c) land appurtenant to a building (including factory building) or (h) fittings, whether or not any or all of the above are owned by the payee. On the basis of this provision, the AO was of the view that the definition of rent is very broad. To support his case, the AO relied upon various decisions. 6. Submissions of the assessee before the revenue authorities are as under: "During the Financial Year 2011-2012 the assessee firm has paid the rent and cam charges to various parties. It is clear from the reading of the agreements with these parties that both the agreements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on the same date i.e. on 25.03.2019. The AO has taken a different view for the both types of agreement for deciding the same nature of expense, and has ended up by making an addition for short deduction of TDS for the type of agreement where Rent and CAM charges are paid to same parties. As per section 194-I of the Income Tax Act, 1961 reads as under: "194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or a draft or by any other mode, whichever is earlier, deduct income tax thereon at the rate of: 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, the ld. CIT(A) held that undisputedly there is single lease agreement for payment of rent as well as CAM charges. The ld. AR has submitted that payment of CAM charges is nothing but reimbursement of common area maintenance expenses incurred by the lessor on general maintenance, electric, water and security services etc. Further, it has been claimed that, the common area is outside the area which is leased out to the assessee. These arguments are not acceptable because the common area and other services provided by the lessor are also enjoyed by the appellant along with the specified area. As per the same agreement, the appellant is required to pay lease rent as well as CAM charges. It is also noticed that there is no distinction betwe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no control on actual expenditure to be incurred by the lessor. In view of above mentioned factual and legal position, thus it is clear that the CAM charges paid by the appellant are part of rent liable for TDS u/s 194-I. 9. Heard the arguments of both the parties and perused the material available on record. 10. At the outset, we find that the issue of deductibility of tax on rent and CAM was examined by the Tribunal in the case of Connaught Plaza Restaurants P. Ltd. Vs. DCIT in ITA No. 993 & 1984/Del/2020 order dated 31.12.2021, Lifestyle International Pvt. Ltd. [TS-352-ITAT-2022 (Bang)] and Lifestyle International Pvt. Ltd. Vs. ACIT in ITA No. 400-405/Bang/2021 order dated 26.04.2022 and also by the order of this bench in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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