DCIT Vs Biba Apparels Pvt. Ltd. (ITAT Delhi)
The appeals before the Income Tax Appellate Tribunal (ITAT), Delhi, arose from three separate orders of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 29.09.2025 relating to Assessment Years 2013-14, 2014-15, and 2015-16. Since the facts and issues involved were identical, the Tribunal treated Assessment Year 2013-14 as the lead case and disposed of all three appeals through a common order.
The central issue concerned the tax deduction at source (TDS) applicable to Common Area Maintenance (CAM) charges paid by the assessee. The Revenue challenged the CIT(A)’s decision holding that CAM charges constituted contractual payments subject to TDS under Section 194C of the Income Tax Act, rather than rent liable for TDS under Section 194-I.
The assessee, engaged in the business of manufacturing and retail of ethnic wear under the brands “Biba” and “Rangriti,” had occupied premises in malls operated by the Ambience Group. A survey conducted under Section 133A(2A) in the case of the Ambience Group revealed that mall occupants paid CAM charges on which TDS had been deducted at 2% under Section 194C. The Department took the view that such payments formed part of rental activity and therefore attracted TDS at 10% under Section 194-I.
