TMI Blog2018 (6) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... eged to have been paid to AAI does not constitute rent, therefore the application of provisions under section 194I does not arise at all.- Decided in favour of assessee TDS u/s. 194A/194H - charge of TDS and interest on payment of bank guarantee commission and bank charge - Held that:- As decided in assessee's own case for AY 2011-12 payments made to bank guarantee and the payments of commission paid for bank guarantee are not covered by the provisions of section 194H of the Act. In the present case, ITD Cementation India Ltd. is a sister concern of the assessee. The said sister concern arranged loan from IDBI to the assessee and the impugned amount is to be paid to IDBI towards bank guarantee, commission, bank charges and interest by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder consideration and accordingly, notice u/s. 201(1)/201(1A) of the Act dated 19.03.2014 was issued to the assessee. From the records/documents it was observed by the AO that the assessee had paid a sum of ₹ 80,15,529/- as land rent to M/s. Airport Authority India Ltd. but had not deducted tax on those payments. The assessee was asked to explain as to why sec. 194I for deduction of TDS on land rent had not been complied with. The assessee gave a detailed reply which was reproduced by the AO in order passed u/s. 201(1)/201(1A) of the Act. After considering the submission of the assessee the AO treated the assessee in default vide his order dated 28.03.2014 passed u/s. 201(1)/201(1A) of the Act. Aggrieved, assessee preferred an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Hindustan Coca Cola Beverage Pvt. Ltd. reported in 293 ITR 226 and held that the assessee is not in default for non-deduction of TDS as the payment alleged to have been paid to AAI was in turn offered by AAI as income in its account and paid the tax. In view of the ratio laid down by the Hon ble High Court of Delhi in the case of NIIT (supra), we hold that the amounts alleged to have been paid to AAI does not constitute rent, therefore the application of provisions under section 194I does not arise at all. Even otherwise we are in agreement with the opinion rendered by the CIT(A) in placing reliance in the case of Hindustan Coca Cola Beverage (supra), assessee cannot be held in default as the recipient AAI is a Govt. Public Sector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D Cementation India Ltd. is a Co-venturer of assessee and the expenses were reimbursed by the assessee to its Co-venturer, therefore, reimbursement cannot be subject to TDS. Assessee s submission was not accepted by the AO and, therefore, he opined that the said payments cannot be treated as reimbursement as the assessee company is making payment to another company and accordingly treated the assessee as default u/s. 201(1) of the Act. Aggrieved, assessee preferred an appeal before the Ld. CIT(A), who allowed the assessee s ground of appeal by observing as under: 6.2. I have examined the submissions of the AR of the appellant and the AO. I am in agreement with the view of Ld. CIT(A)-1, Kolkata as discussed earlier. As the stated paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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