Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 410 - AT - Income TaxDenial of credit of TDS - rental income collected by the appellant under an agreement on behalf of Development Commissioner (Handicrafts) Ministry of Textiles in respect of Rajeev Gandhi Handicrafts Bhawan, New Delhi - HELD THAT:- Assessee was collecting rent on behalf of Government of India from the tenants and then remits that rent as it is back to the Government. The building is owned by the Government of India. Assessee is not the beneficial owner of the rent as property was given by the Government to the assessee for its use. Assessee was merely collecting the rent. Rent collected by the assessee is definitively its income and rent paid back to the Government is its expenses. It is a lease in & lease out agreement/understanding. On the rent paid to the assessee by the tenants, tax is deductible under Section 194I. As assessee pays the same to the Government, it does not need to deduct tax at source on its repayment to the Government. In all practical purposes rent collected by the assessee from its tenants and rent paid to the Government (actual transfer of rent to the Government) is its outgo. Tax deducted by the Tenant should be granted as refund to the assessee as rent collected is its income in hands of the assessee and rent paid to the Government is its expenses. AO as well as the CIT(A) was not right in denying the credit of TDS to the assessee. - Decided in favour of assessee.
|