Fairwood Holdings Pvt Ltd Vs ITO (ITAT Delhi)
CAM Charges TDS Dispute Before Delhi ITAT
Fairwood Holdings Pvt. Ltd. appealed against the order of the CIT(A), NFAC, relating to Assessment Year 2017-18, concerning short deduction of TDS on Common Area Maintenance (CAM) charges. The assessee had paid CAM charges of Rs.23,82,310/- to M/s IT Enfra Services Pvt. Ltd. and deducted TDS at 2% under Section 194C of the Income-tax Act, 1961. The Assessing Officer treated the CAM payments as covered by Section 194-I, holding that tax should have been deducted at 10%.
Assessment and CIT(A) Proceedings
The proceedings arose under Sections 201(1) and 201(1A). The AO determined TDS liability of Rs.1,90,589/- under Section 201(1) and interest of Rs.1,52,139/- under Section 201(1A), resulting in total demand of Rs.3,42,723/-, and treated the assessee as an assessee in default. Penalty proceedings under Sections 271C and 272A(2)(g) were also initiated.
The assessee appealed. However, the CIT(A), by order dated 30.10.2025, dismissed the appeal and held the assessee to be in default, but proceeded on a different factual basis, referring to expenses under “Fee for professional or technical services” and Section 194J.
Delhi ITAT Finds CIT(A) Order Based on Erroneous Facts
The Delhi ITAT observed that the CIT(A) had not adjudicated the actual issue involved, namely whether CAM charges were subject to TDS at 2% under Section 194C or 10% under Section 194-I. The Tribunal noted that the CIT(A)’s finding was based on completely different facts and had not dealt with the CAM charges issue.
