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2020 (7) TMI 68 - AT - Income TaxTDS u/s 194A - Non deduction of TDS on rent paid to Krishi Upaj Mandi Samiti - whether recipient Krishi Upaj Mandi Samiti is exempt under 10(26AAB)? - HELD THAT:- A certificate of the Chartered Accountant under first proviso to section 201(1) of the Act dated 3rd June, 2016 states about the amount of rent paid by the assessee to the payee and certifies that the rental income received from the assessee has been accounted for in the financial statements and the taxable income of the 'payee' is nil. This fact proves that there was no liability to pay income tax on the payee as taxable income was nil. Also decided in BRANCH MANAGER, STATE BANK OF BIKANER & JAIPUR [2012 (4) TMI 210 - ITAT JAIPUR] it was held that "there was no question of deducting TDS by the assessee under section 194A of the Act on the interest paid to Rajasthan Rural Road Development Agency (RRRDA) which is a society registered under Societies Act, 1958 and was wholly financed by the Stated Government. Thus, in view of the CBDT, circular vide No. 04 of 2002 on 16-7-2003 and the certificate of Chartered Accountant dated 3-6-2016 we are of the considered view that the assessee should not have been treated as assessee in default for non-deduction of tax at source on the rent payment to Krishi Upaj Mandi Samit - In view of the CBDT Circular No. 4 of 2002 dated 16-7-2013 and circular No. 18/2017 on 29-5-2017, are of the considered view that the assessee should not treated as assessee in default for non-deducting tax on rent paid to Krishi Upaj Mandi Samiti. - Decided in favour of assessee. Short deduction of TDS on rent paid u/s 201(1) - payment to Co-owners - AO in treating the share of money as rent liable to TDS - applicability of the provisions of section 194I of the Act - HELD THAT:- We find that the assessee had duly deducted the tax at source on the rent paid to the co-owners where the amount of rent exceeded the limit of ₹ 1,80,000/- and in two cases where the amount was below the limit of ₹ 1,80,000/- tax was not deducted - assessee should not be treated as assessee in default for short deduction of tax on rent payment to M/s. Sadhana Enterprises since the assessee has rightly deducted, collected and paid the tax on share of the rent paid to each of the co-owners. Revenue authorities failed to bring any contrary material to prove that the total rent was paid to M/s Sadhana Enterprises. Since the rent have been paid to each of the co-owners, tax deductible at source as per the provisions of section 194I of the Act, has been complied by the assessee. We, thus, set aside the finding of Ld. CIT(A) and allow ground no. 2 of the assessee.
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