9911796707
TMI Blog2024 (9) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... as paid to the owner by the assessee company. In this case, the appellant has taken a shop in R City Mall. The payee has included the amount received as its business income in its return of income and paid the taxes accordingly. The CAM charges paid are for separate and distinguishable services and cannot be said to be for use of building. On similar facts, the Co-ordinate benches of ITAT had held that the CAM charges paid are not covered by Section 194I of the Act and only TDS provision that can be applied is Section 194C of the Act. Appeal of the assessee is allowed. - Sh. C. N. Prasad, Judicial Member And Dr. B. R. R. Kumar, Accountant Member For the Assessee : Sh. S. K. Agarwal, CA For the Revenue : Sh. Kanv Bali, Sr. DR ORDER PER DR. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isregarding that the relevant clarifications under CBDT Circular Nos. 715 and 558 are not applicable to the appellant company. 3. Benetton India Private Limited is a wholly owned subsidiary of Benetton Group Srl, Italy. The Appellant is engaged in the business of manufacturing and trading of readymade garments. The company operates through various franchisees as well as self-owned stores in India. 4. For the purpose of carrying out its business, the Company had taken on lease a unit/shop in R City Mall, Ghatkoper Developers Pvt. Ltd. During AY 2011-12, the Company had paid rent, Common Ares Maintenance ('CAM ) and miscellaneous amenity charges to the payee. Value of the services for the aforesaid charges had been separately quantified u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings, it was gathered by the Department that the owners of the malls in addition to the rent had been collecting CAM charges from the lessees on which TDS was deducted 2% Le u/s 194C of the Act. Observing, that payment of CAM charges were essentially a part of the rent, the AO treated the assessee as an assessee-in-default for short deduction of tax at source u/s 201(1)/201(1A) of the Act. On appeal, it was observed by the Tribunal that the CAM charges paid by the assessee did not form part of the actual rent that was paid to the owner by the assessee company. As the facts involved in the case of the assessee before us remains the same as were therein involved in the aforesaid case, therefore, in the backdrop of our aforesaid deliberation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le International (P.) Ltd. [2022] 140 taxmann.com 445, held that TDS on CAM charges shall deducted at 2% under section 194C. In the given case, the Bench also noted as under: The fact that these two payments are agreed and paid under the same agreement does not change the character/nature of such payments warranting single rate of tax deduction at source. The law has provided for different rates of tax deduction at source based on the nature of payment and it is imperative that the correct rate of tax is applied depending on the nature of payments. 10. In the present case, the question under consideration is only in respect of applicability of correct TDS provision on the said charges. In this case, the appellant has taken a shop in R City ..... X X X X Extracts X X X X X X X X Extracts X X X X
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