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TMI Blog2020 (10) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The learned CIT(A) erred in misinterpreting Circular No. 5 dated 30th July 2012. 3. The learned CIT(A) erred in holding that the accommodation was taken on regular basis. 4. Both the lower authorities erred in holding that the payment constitutes "rent" within the meaning of section 1941. 5. Having regard to facts and circumstances of the case, the Appellant submits the above disallowance of Rs. 4,68,543/- be deleted." 3. The only effective issue raised by the assessee is against the confirmation of addition of Rs.468543/- by CIT(A) as made by the Assessing Officer under section 40(a)(ia) of the Act on account of non-deduction of TDS on rent paid to Royal Yacht Club. 4. The facts in brief are that the assessee filed its return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n it has clarified the provisions relating to tax deduction at source regarding changes introduced through Finance Act, 1995. The assessee also submitted that in the said Circular the Board clarified that the TDS is applicable on the payments made by persons other than individual and HUF for hotel accommodation taken on regular basis which will be in the nature of rent would subject to TDS under section 194-I of the Act. The assessee submitted that assessee has not taken any residential accommodation on regular basis and only booked the rooms as and when the Consultants visited India for promoting, publishing, documenting, exhibiting and selling of arts. Therefore, the booking was of casual / occasional nature and not regular one. Besides t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94I. The appellant has been booking the same place in this case Royal Bombay Yacht club and for longer periods. Since the same placed is booked throughout the year it comes under the ambit of section 194I as the accommodation is taken on regular basis. The appellant has submitted the bill copy. I have perused the same. All the bills shows the same narration, only dates are changed. For instance in all bills employees name is Uday, Chamber charges (3 ad 4 floor) and name Dean Robin (R-136). So this shows that the booking is done on the same place. Hence in the light of the above discussion I find the Assessing Officer has rightly made disallowance under section 4(a)(i)(a) and so ground of appeal raised by the appellant is dismissed." 6. Aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, for all those hotels, where the stay expenses after deduction of the food expenses was more than Rs. 1,20,000, it was held by him that TDS was required to be deducted u/s 194I on the whole of such amount. 31. During the course of hearing before us, Ld. Counsel of the assessee relied upon the CBDT circular No.5 of 2002 dated 30-07-2002 wherein it was clarified that where earmarked rooms are let out for specified rate and specified period, only then, they will be construed to be accommodation made available on regular basis whereas the facts of the assessee's case are that there was no prior contract with the hotels. The rooms were hired on as and when available basis, corresponding to the date of shooting. There was no contract for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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