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2022 (7) TMI 176 - AT - Income TaxTDS u/s 194C OR 194I - Short deduction of TDS - Default u/s 201(1) and 201(1A) - common maintenance charges (CAM) Paid - HELD THAT:- As clearly gathered that CAM charges have been paid to different parties by executing agreements which do not form part of rent payment. It has not been disputed by the authorities below, nor by the learned Sr. DR before us, that the assessee has deducted TDS u/s 194C of the Act on the payment of CAM charges to the respective third parties who provided services to maintain common area. As payment towards CAM charges are in the nature of contractual payment which are made for availing services/ facilities and not for the use of any premises/ equipment, therefore, same would be subject to deduction of tax at source u/s 194C of the Act and not u/s 194I of the Act. This view has also been taken by the Tribunal in the case of Kapoor Watch Company Pvt. Ltd. (2021 (1) TMI 209 - ITAT DELHI]. As the facts involved in the present case of assessee before us are quite identical and similar to the facts of the case involved in the cases of Connaught Plaza Restaurants P. Ltd. (2022 (1) TMI 409 - ITAT DELHI] and Kapoor Watch Company Pvt. Ltd. (supra), therefore conclude that as claimed by the assessee the TDS on CAM charges paid by it is liable for deduction of tax at source @ 2% u/s 194C - we set aside the order of the AO as well as that of learned CIT(A) treating the assessee company as an assessee in default u/s 201(1) of the Act. - Decided in favour of assessee.
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