Case Law Details
Welgrow Hotels (P) Ltd. Vs ITO (ITAT Delhi)
ITAT Delhi held that TDS under section 194C (and not 194-I) of the Income Tax Act, 1961 is deductible in case of Common Area Maintenance Charges (CAM Charges).
Facts- In the instant case the Assessing Officer vide order dated 03.2019 impugned herein passed u/s 201(1)/(1A) of the Act directed the Assessee to pay TDS amounting to Rs. 2,55,745/-u/s 201(1) of the Act and interest thereon to the tune of Rs. 2,29,478/- u/s 201(1A) of the Act on account of CAM charges under Section 194-I of the Act, whereas the Assessee had claimed that Assessee was liable to deduct TDS u/s 194-C of the Act.
Conclusion- The Hon’ble Coordinate Bench has already dealt with the identical issue and categorically held that for CAM charges the provisions of Section 194-C of the Act are applicable.
In the instant case it is an admitted fact, as not refuted by the learned DR, that the Assessee has deducted TDS u/s 194C of the Act, and the facts are not distinguishable to the facts involved in Yum Restaurants India case consequently we are inclined to direct the AO to recompute the tax liability accordingly.
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Thank u.