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2002 (6) TMI 29 - HC - Income TaxDeduction Of Tax At Source, Deduction From Rent, Interpretation Of Taxing Statutes - even accepting that the obligation to effect TDS creates hardship, financial inconvenience to the first petitioner, even then, that circumstance itself cannot be a valid or legal ground to take out the payments received by the payee from the patrons for use of the hotel rooms in pursuance of agreements between them from the purview of "rent" as defined in the Explanation to section 194-I. If TDS results in hardship, financial burden on the recipient, Parliament itself has made the provision in section 197 for obtaining a certificate for deduction at lower rate or no deduction of income-tax. Section 197 of the Income-tax Act relating to certificate for deduction of income-tax at lower rate or for no deduction of income-tax in appropriate cases has been amended to include income by way of "rent" within the scope of the said section. Therefore, it is open for the first petitioner to make necessary application under section 197 if there is any justification or hardship for it to do so. In conclusion, we hold that the charges paid to the first petitioner-company by its customers like respondents Nos. 4 and 5, for use and occupation of the hotel rooms should be regarded as "rent" within the meaning of section 194-I of the Act.
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