CAM Charges Not Rent, TDS Under 194C Upheld by SC Due to Nature of Payment

CIT (TDS)-1 Vs Liberty Retail Revolutions Ltd. (Supreme Court of India) The dispute concerned the correct provision for deduction of tax at source (TDS) on Common Area Maintenance (CAM) charges paid by a tenant operating from a shopping mall. The Assessing Officer treated CAM charges as part of rent and held that tax should have been deducted under Section 194-I of the Income Tax Act, 1961 at 10%, instead of 2% under Section 194-C. On this basis, the assessee was treated as an assessee-in-default under Sections 201(1) and 201(1A), and demands for tax and interest were raised. The Commissioner ...