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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 ..... ated by a common order. 3. In ITA No. 7290/Del/2019, following grounds have been raised by the assessee: "1. That on the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in holding that Common Area Maintenance ('CAM') charges paid by the Appellant are in the nature of rent and are liable to TDS u/s 194I of the Act. 2. That on the facts and circumstances of the case and in law, the Ld. CIT (A) has failed to appreciate that the CAM charges paid are towards services in relation to common area which is not in the possession of the Appellant and comprise services like cleaning, maintenance, upkeep, security, air conditioning, landscaping, signages, water, electricity, consumables, lighting, sinking fund etc. Charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constitute approximately the same percentage of rent." 4. The similar issue involving deduction of TDS on rent and CAM charges stands adjudicated by the order of the Tribunal in the case of Yum Restaurants India (P.) Ltd. in ITA No. 1115/Del/2020 for A.Y. 2012-13 vide order dated 03.10.2022. 5. For the sake of ready reference and completeness, the ratio of the said case is reproduced as under: "3. The provisions of TDS on rent are governed by Section 194I and maintenance contract are governed by Section 194C of the Income Tax Act, 1961. In this backdrop of the provisions of the Act, the affairs of the assessee are examined. As per the lease deed entered by the assessee with M/s Gopalan Enterprises, Bangalore, the assessee obtained piece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 between CAM charges and lease rent payments except, for raising separate invoices. The Explanation below section 1941 which defines "Rent" takes into its ambit any payment, 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 and hence it is clear that any payment even for use of any building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges to AAI for landing and takeoff facilities including for parking of the aircrafts. As is clear from the facts of this case, the lease charges were paid for utilizing the serves of airport and not of the premises in essence. Accordingly, I hold that the AO has rightly distinguished the same from the facts of appellant. Hence, the grounds of appeal are dismissed." 6. The undisputable fact in this case is that while the lease rentals are paid based on a fixed percentage on the net revenue, the CAM charges are based on the per sq. ft. area. The observation of the ld. CIT(A) is that the rent by any name, lease, sub-lease, tenancy or the reliance on the judgment wherein the services are intrapolated into the rent stand on a different pedesta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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