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M/s. Facets Polishing Works Pvt Ltd Versus ITO, TDS-1, Surat

2015 (7) TMI 328 - ITAT AHMEDABAD

TDS u/s 194I - payment made for use of property of the member of the Joint Venture (JV) - assured return - In the nature of Rent or not - Held that:- the said company provided the property for the purpose of joint venture business alongwith assessee, the payment made by the assessee cannot be said to be rent, so as to make the assessee liable for deduction u/s 194I. - Decision in the vase of Commissioner of Income-tax - II Versus Tirupati Organisers (P.) Ltd. [2013 (7) TMI 540 - GUJARAT HIGH COU .....

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services does not mean that services become technical or professional in nature. Hence, the A.O.’s action in this regard is not approved. - Decided on favour of assessee.

Disallowance of allowing exemption for the office Wear Allowance (‘OWA’) under section 10(14) - Held that:- In this case, the assessee is unable to satisfy any of the conditions. When there was no dress code and the employees were free to wear any dress, how the wear-allowance can be said to be granted to meet the e .....

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: Shri Tushar Hemani, AR For the Respondent : Smt Sonia Kumar, Sr. DR. ORDER Per G. D. Agrawal, Vice President: ITA Nos. 674 & 856/Ahd/2011 are the cross appeals filed by the assessee and Revenue respectively against the order of the learned Commissioner of Income-tax (Appeals)-I, Surat dated 16.11.2010 for Assessment Years 2007-08. ITA Nos. 676 & 857/Ahd/2011 are the cross appeals filed by the assessee and Revenue respectively against the order of the learned Commissioner of Income-tax .....

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in the appeal by the Revenue in both the years read as under:- AY 2007-08 The Ld. CIT(A) has erred in law as well as facts of the case in deleting the order passed u/s 201A(1) of the I.T. Act of ₹ 10,09,800/- & interest charge u/s 201(1A) of the IT Act of ₹ 4,27,482 for A.Y. 2007-08 even though during the course of verification it was noticed that the assessee company had not deducted tax in respect of payment of rent u/s 194I of the IT Act of ₹ 60,00,000/- @ ₹ 5 lak .....

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Tirupati Organisers Pvt Ltd (TOPL) for using premises & infrastructures. 3. We have heard both the parties and perused the material placed before us. The Assessing Officer held the assessee to be in default in non deduction of tax in respect of payment made to Tirupati Organizers Pvt Ltd. That, as per Assessing Officer, the above payment was in the nature of rent and therefore, the assessee was liable to deduct the tax u/s 194I. The CIT(A) accepted the assessee s contention that it was not .....

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essed. As per Revenue, it is to be assessed under the head from house property while as per assessee it was assessable under the head profits and gains of business , because it was the income from the business of joint venture of processing of diamonds. The dispute reached to the High Court and the Hon ble jurisdictional High Court in the case of Tirupati Organisers Pvt Ltd vide Tax Appeals No. 226 to 268 of 2013, decided the issue in favour of the assessee with the following findings:- … .....

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joint venture business alongwith assessee, the payment made by the assessee to Tirupati Organizers Pvt Ltd cannot be said to be rent, so as to make the assessee liable for deduction u/s 194I. We, therefore, respectfully following the decision of Hon ble jurisdictional High Court (supra), uphold the order of the CIT(A) on this point and reject Ground No.1 of the Revenue s appeal for Assessment Year 2007-08 as well as Assessment Year 2009-10. 6. The only other ground raised in the Revenue s appea .....

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ct. 7. We have heard both the parties and perused the material placed before us. The assessee made the payment to various parties in respect of annual maintenance charges. The Assessing Officer was of the opinion that it is a professional fee; therefore, tax was required to be deducted u/s 194J. While, the assessee was of the opinion that it was a contract for rendering the services and therefore, tax was required to be deducted u/s 194C. The tax was actually deducted u/s 194C. On appeal, the CI .....

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because technical persons are involved in rendering the said services does not mean that services become technical or professional in nature. Hence, the A.O. s action in this regard is not approved. 8. After considering the facts of the case and arguments of both the sides, we do not find any infirmity in the above findings of the CIT(A). We, therefore, uphold his order in this regard and reject Ground No.2 of the Revenue s appeal for Assessment Year 2009-10. ITA Nos. 674 to 676/Ahd/2011 - Asse .....

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e us. The assessee has paid Wear-Allowance to the employees and the same was claimed exempt u/s 10(14) of the Income-tax Act. Therefore, the allowances paid to the employees were not included in salary for the purpose of deduction of tax at source u/s 192. The Assessing Officer was of the opinion that the Wear-Allowance is not exempt u/s 10(14) and therefore, ought to have been included in the salary for the purpose of deduction of tax at source. On appeal, the CIT(A) sustained the order of the .....

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he appellant has not been able to submit any details in this regard before the A.O. and also during appellate proceedings. Hence, the A.O. s action in this regard is approved. 11. At the time of hearing before us, the ld. Counsel for the assessee could not establish how the wear-allowance paid to the employees was exempt u/s 10(14). During the course of argument before us, he fairly admitted that there was no dress code for the employees. Thus, the employees were free to wear any dress. For the .....

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