Case Law Details
TCNS Clothing Co. Limited Vs ACIT (TDS) (ITAT Delhi)
ITAT Delhi held that Common Area Maintenance charges (CAM Charges) paid by the assessee are liable for 2% TDS u/s 194C of the Income Tax Act and not at 10% u/s 194I of the Income Tax Act.
Facts- The present appeal is filed by the assessee against order of CIT(A) in upholding the action of the AO in treating assessee in default within the meaning of the provisions of Section 201(1) of the Act for failing to deduct tax at source of Common Area Maintenance charges (CAM) at 10% u/s 194I as against 2% deducted by the assessee u/s 194C of the Act.
Conclusion- We further observe that in assessee’s own case for the AY 2013-14 the Ld.CIT(A) (NFAC), Delhi, following the decision of the Tribunal in the case of Connaught Plaza Restaurant Pvt. Ltd. Vs. DCIT and the decision of the Bangalore Bench in the case of Life Style International Pvt. Ltd. Vs. ACIT, held that the CAM charges paid by the assessee were liable for deduction of tax at source at 2% u/s 194C of the Act and directed the Assessing Officer not to treat the assessee as an assessee in default u/s 201(1) of the Act.
Held that the CAM charges paid by the assessee are liable for TDS only at 2% u/s 194C of the Act and not at 10% u/s 194I of the Act. Grounds raised by the assessee on this issue are allowed.
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