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2013 (1) TMI 539 - AT - Income TaxNon deduction of TDS on Ground Rent - Whether the payments towards rent of the ground along with other facilities requiring deduction of tax at source u/s 194I or the payments are for works contract as per section 194C? - Held that:- Before coming to a definite conclusion on this issue, it is very much necessary to ascertain the exact nature of payment and the services rendered or facilities provided for which such payment was made. As find from the order of the AO that he has not made any endeavour to ascertain the correct fact by taking necessary enquiry either with the BCCI or HCA for finding out the true character of the payment made. At the same time, the CIT (A) was also not justified in presuming the payments to be in the nature of work contract falling u/s 194C when she herself has observed that the claim of the assessee cannot be accepted since the payment could not have been just on the basis of debit note and there might have been an agreement either oral or written for providing the particular services. Thus the CIT (A) was not justified in directing the AO to consider the payment u/s 194C and accordingly calculate tax and interest u/s 201(1)& 201(1A). The order of the CIT (A) is modified to this extent only. However, it is proper to remit the matter to the file of the AO for determining the issue afresh after conducting necessary enquiry affording a reasonable opportunity of being heard to the assessee - in favour of assessee for statistical purposes.
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