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2016 (10) TMI 314 - AT - Income TaxShort deduction of TDS - TDS u/s 194C OR 194I - PSF and X-Ray charges - AO held that the payment made by the assessee was covered by the provisions of section 194-I and treated the assessee in default for not deducting the taxed at higher rate - Held that:- Payment made by the assessee to MIAL cannot be treated rent, as per the provisions of section 194-I of the Act. There was no use of land by the assessee for both the charges collected by it. Thus, the basic ingredient i. e. use of land, plant, machinery etc. is missing and hence it can safely be held that the assessee had rightly deducted the tax at the rate of 2%, as per the provisions of section 194-C of the Act. PSF charges paid by the assessee on behalf of its customer, did not attract the provisions of section 194-I. See Jet Airways (India) case [2014 (9) TMI 650 - ITAT MUMBAI]
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