No Section 194I TDS on rental payments below threshold limit

Air Transport Corporation (Assam) Pvt. Ltd. Vs ITO-TDS (ITAT Chennai)

Introduction: The appeal of Air Transport Corporation (Assam) Pvt. Ltd. against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2016-17 has been adjudicated by the Income Tax Appellate Tribunal (ITAT) Chennai. The primary issue revolves around the treatment of rental payments and the imposition of TDS by the Assessing Officer (AO).

Detailed Analysis:

1. Grounds of Appeal: The appellant challenges the AO’s decision to treat payments below Rs.1,80,000 as liable for TDS under section 194-I, resulting in the assessee being considered in default and facing TDS under section 201. The appeal also questions the imposition of interest under section 201(1A) for the alleged failure to deduct TDS.

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