CAM charges cannot partake the character of rent – Section 194C TDS applicable

Devyani International Limited Vs ACIT (ITAT Delhi) The short controversy hinges around the applicability of Section 194C or Section 194I on payment of CAM charges by licensee Assessee. To address the issue, a reference was made to the MOU between the lessor/owner and the licensee assessee. It is the case of the assessee that the rent payment to the licensor is independent of the CAM charges payable and thus the CAM charges cannot partake the character of rent. The assessee thus contends that the deduction rate applicable on CAM charges @2% under Section 194C has been rightly deducted. The asse...