Case Law Details
Dadiba kali Pundole Vs ACIT (ITAT Mumbai)
The issue under consideration is whether the TDS u/s 194I is applicable on the rent if the accommodation services were taken on a casual basis?
ITAT states that, the accommodation was booked by the assessee in the club not on a regular basis but on casually and occasionally as and when the foreign consultants visits the assessee in connection with assessee’s business. ITAT are quite convinced with the arguments of the learned Counsel that this accommodation is occasional/ casual as no specific accommodation is earmarked and the same is made available to the assessee on the availability basis. In their opinion, the case is squarely covered by the decision of co-ordinate Bench in the case of Red Chillies Entertainment Pvt. Ltd. (supra). Moreover, the Circular has very clearly mentioned that the provision of section 194(I) are applicable where the accommodation is taken on regular basis, which means that a specific accommodation is earmarked to be let out for the specific period but in the present case the facts are different. Accordingly, ITAT are inclined to set aside the order of CIT(A) as well as Assessing Officer by deleting the disallowance.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee directed against respective order of learned CIT(A) pertaining to Assessment Years 2013-14.
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