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TMI Blog2018 (12) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer under section 40(a)(ia) of the Income-tax Act, 1961 ("Act") in respect of payment of hotel accommodation expenses to the tune of Rs. 1,53,09,598. 2. That the CIT(A) erred in facts and in law in holding the appellant to be liable to deduct tax at source under section 194-1 out of payments to hotels instead of section 194-C of the Act invoked by the assessing officer. 3. That the CIT(A) erred on facts and in law in arbitrarily holding that as in the case of the appellant, as per the rate contract, the hotels will provide a certain number of rooms at a specified rate the payments were covered under section 194-1 of the Act and tax was required to be deducted at source therefrom. 4. That the CIT(A) erred on facts and in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 40(a)(ia) of the Act in respect of payments made to hotels allegedly holding that the same constitutes payment of "rent" and was covered under section 194-I of the Act. 8. That the Ld CIT(A) has erred on facts and in law in holding that the appellant's liability to deduct tax at source falls under section 194-1 of the Act without appreciating the fact that contracts with hotels do not guarantee any provision of rooms but such contracts only ensure room rate. 9. Without prejudice, that the CIT(A) erred on facts and in law in upholding estimated disallowance of Rs. 4,77,337 on the basis that in 50% of cases where payment is more than Rs. 30,000 but less than Rs. 1,00,000 for the entire year, payment of Rs. 30,000 could hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate contract hotels will provide certain number of rooms on regular basis. The Ld. CIT(A) noted that as in the case of the assessee as per the rate contract hotels will provide a certain number of rooms at specific rate the issue is covered under the provisions of Section 194I, therefore, TDS provisions are clearly applicable. The addition was accordingly confirmed. 4. The assessee has filed an application for admission of additional evidences as per Rule 29 of Income Tax (Appellate Tribunal) Rules, 1963. The additional evidence are as below : S. No. Particulars Page No. 5 Stop sale communication and ledger of Casa Baga, Goa 100-101 6 Rate Contract Agreement with Fariyas Hotels, Mumbaidated 15/05/2014 along with ledger extra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elling to India, allegedly holding that the assessee failed to deduct tax at source under section 194C of the I.T. Act from the payment which was in the nature of payment for work. 5. The assessee filed an appeal before the Ld. CIT(A) who has confirmed the addition for non-deduction of TDS under section 194I of the I.T. Act. The Ld. CIT(A) uphold the disallowance merely by holding that rate contract agreements entered into by the assessee with the Hotels carried an obligation to provide rooms and therefore, the payments for accommodation is in the nature of rent for which tax has to be deducted under section 194I of the I.T. Act. In Circular No.715 Dated 08.08.1995 and Circular No.5 of 2002 Dated 30.07.2002 issued by the CBDT, it was clari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Delhi High Court in the case of CIT vs. Text Hundred Pvt. Ltd., 351 ITR 57 in which it was held as under : "13. The aforesaid case law clearly lays down a neat principle of law that discretion lies with the Tribunal to admit additional evidence in the interest of justice once the Tribunal affirms the opinion that doing so would be necessary for proper adjudication of the matter. This can be done even when application is filed by one of the parties to the appeal and it need not to be a suo motto action of the Tribunal. The aforesaid rule is made enabling the Tribunal to admit the additional evidence in its discretion if the Tribunal holds the view that such additional evidence would be necessary to do substantial justice in the matter. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing a room or specified set of rooms. Assessee further claimed that since Ld. CIT(A) misunderstood the Circulars issued by the CBDT, therefore, these additional evidences shall have to be considered in order to decide the issue whether provisions of Section 194I would apply in the facts and circumstances of the case. The Hon'ble Supreme Court in the case of Tekram 262 CTR 118 and Hon'ble Punjab & Haryana High Court in the case of Mukta Metal Works 336 ITR 555 admitted additional evidences being relevant and required to be looked into for deciding the matter in issue. Therefore, in order to do substantial justice between the parties and considering that the additional evidences are relevant and goes to the root of the matter, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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