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2017 (7) TMI 1144 - AT - Income TaxTDS u/s 194I - amount paid towards land rent to AAI - non deduction of tds - funds were not in control of the assessee and the amounts deducted directly from its running accounts bills and the AAI being Govt. Enterprise having been disclosed the said TDS in its accounts - assessee in default - Held that:- The assessee is not in default for non-deduction of TDS as the payment alleged to have been paid to AAI was in turn offered by AAI as income in its account and paid the tax. In view of the ratio laid down by the Hon’ble High Court of Delhi in the case of NIIT (2009 (9) TMI 42 - DELHI HIGH COURT), we hold that the amounts alleged to have been paid to AAI does not constitute rent, therefore the application of provisions under section 194I does not arise at all. Even otherwise we are in agreement with the opinion rendered by the CIT(A) in placing reliance in the case of Hindustan Coca Cola Beverage (2007 (8) TMI 12 - SUPREME COURT OF INDIA ), assessee cannot be held in default as the recipient AAI is a Govt. Public Sector Enterprise which is stated to have offered this receipt to tax. The burden lies on the AO to verify whether the said AAI offered the payment received from the assessee to tax or not. - Decided against revenue TDS u/s 194A - Non-deduction of TDS on interest payments - whether reimbursement of actual expenses made to the Co venture are not subjected to TDS and not covered by section from 194A ? - Held that:- In the present case, ITD Cementation India Ltd. is a sister concern of the assessee. The said sister concern arranged loan from IDBI to the assessee and the impugned amount is to be paid to IDBI towards bank guarantee, commission, bank charges and interest by the sister concern and the same were reimbursed by the assessee to its sister concern. There is no element of income in such payments. Therefore, we see reason to interfere in the order of CIT(A) and it is justified.- Decided against revenue
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