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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 ..... 2022 (10) TMI 256 - ITAT DELHI] Thus we hold that rent is subjected to TDS @ 10% u/s 194-I and CAM charges u/s 194-C @ 2%. Hence, the appeal of the assessee is hereby allowed. - ITA No. 1621/Del/2020 - - - Dated:- 28-2-2023 - Dr. B. R. R. Kumar, Accountant Member And Sh. Yogesh Kumar US, Judicial Member For the Assessee : Sh. Pradeep Dinodia, CA And Sh. Harsh Jain, CA For the Revenue : Sh. Kanav Bali, Sr. DR ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against the order of ld. CIT(A)-38, Delhi dated 20.08.2020. 2. Following grounds have been raised by the assessee: 1. That on the facts and circumstances of the case, the ld. CIT(A) has grossly err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or lease expenses and CAM charges have been raised and the area for which CAM charges are paid has not been in sole or exclusive use or possession of the assessee. However, the AO rejected the explanation of the assessee on the ground that in the agreement, super area is also specified which includes common area of the complex. Then the AO has referred to the various circumstances where CAM is paid and as per the assessee, TDS u/s 194-I is applicable only in the cases where CAM is paid to the same party or group concern on the basis of same lease agreement. The AO observed that, in the case of assessee CAM charges are variable and linked with the lease agreement. 5. Thereafter, the AO has referred to the provisions of section 1941 includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 276/- and Interest U/S 201(1 A) amounting to Rs. 13,84,939/- was made vide its order dated 25.03.2019. Our submissions with respect to the addition made by the Learned Assessing Officer while passing the assessment order: Addition of Rs. 15,43,276 as Short Deduction of TDS The assessee firm has taken various properties on rent and has entered into agreement with the owners on different basis as follows: i) Rent and CAM charges is being paid to same party itself. ii) Rent and CAM charges is being paid to different vendors by the assessee i.e. one to whom the property belongs and other an entirely independent agency who carries out the maintenance services. The AO has failed to considered our reply dated 25.03. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Furniture or h) Fittings CAM charges are paid relating to the maintenance of Common Area of Mall and for supply of electricity(main and stand by),water and for providing Security, Housekeeping, Repair and Maintenance, Engineering, Horticulture, Insurance Cover, Marketing and/or any other services. It is clearly evident that the CAM charges are paid for various need based services and not for the use of land, building, land appurtenant to building, Machinery, Plant, Equipment or Furniture or Fittings. Therefore the CAM charges does not fall within the ambit of section 194-1 of the Income Tax Act, 1961. 7. The assessee relied upon the judgments of Hon ble Supreme Court in Japan Airlines Company Ltd. Vs. CIT, (377 ITR 372), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urniture/fittings is part of rent. CBDT vide circular No. 715 dated 08.08.1995 (Question No. 24) has also clarified that there is composite arrangement for use of premises and provision of manpower, such agreement in essence is for taking premises on rent and hence provisions of section 1941 are-applicable. This view also gets support from the decision of Hon'ble High Court in the case of Sunil Kumar Gupta Vs ACIT (2016) 389 ITR 38 (P H), in which it is held that where the agreement provides that the owner of the premises shall pay for common facilities, then it is reasonable to presume that the same is factored into the rent payable by the lessee. However, if maintenance charges etc. are stipulated to be payable by the lessor, it mus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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