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TMI Blog2023 (3) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... While there are no expenses incurred against the rent except for general building maintenance and municipal charges, the CAM involves employment of separate staff and separate operations involved on day to day basis - Provisions for rent are governed by Section 194I and CAM charges by Section 194C - AO is directed to re-compute the CAM charges, taking into consideration the two sections mentioned above. Appeals of the assessee are allowed for statistical purpose. - ITA No. 7290/Del/2019 And ITA No. 202/Del/2020 - - - Dated:- 9-2-2023 - Dr. B. R. R. Kumar, Accountant Member Versus Sh. Yogesh Kumar US, Judicial Member For the Assessee : Sh. G. C. Srivastava, Sr. Counsel, Sh. Kalrav Malhotra, Adv. For the Revenue : Sh. Sanjay Nar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the relevant clarifications under CBDT Circular Nos. 715, 558 and 1/2008 are not applicable to the Appellant s facts. 5. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in placing reliance on the judgment of the Hon ble Punjab and Haryana High Court in the case of Sunil Kumar Gupta v ACIT (2016) 389 ITR 38. 6. That on the facts and circumstances of the case and in law, the Ld. CIT(A) failed to appreciate that the order u/s 201(1 )/201(1A) of the Act had been passed by the Ld. AO in a contradictory manner, as the Ld. AO had himself held that CAM charges paid to independent third party service providers are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CAM charges as entered into an agreement for common area maintenance with GVK Properties Management Company Pvt. Ltd. for maintenance of the area at Rs.22/- per sq. ft. for a combined area of 4427 sq. ft. for which monthly maintenance of Rs.97,390/- has been paid. 5. Thus, the issue before us narrows down to deductibility of the tax on the entire payment as rent or to be segregated into rent and CAM. On the this, the observation of the ld. CIT(A) is as under: 4.3 Grounds of appeal Nos. 2(a), 2(b) and 2(c), the Appellant has challenged the action of AO in treating CAM charges as part of rent liable for TDS u/s 1941. Undisputedly there is single lease agreement for payment of rent as well as CAM charges. The AR has submitted that p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 must form part of rent for the purposes of computing income from house property. In the case before hand, the CAM charges are paid by the lessor and the appellant has 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 ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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