TMI Blog2020 (10) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee that this accommodation is occasional/ casual as no specific accommodation is earmarked and the same is made available to the assessee on the availability basis. In our opinion, the case is squarely covered by the decision of Red Chillies Entertainment Pvt. Ltd. [ 2017 (3) TMI 333 - ITAT MUMBAI] as held nothing has been brought before us to show that assessee had entered into any prior contract with the hotels for any specific room or rooms for any specific rates or rooms for any specific period. The rooms were hired on as and when available basis at the regular tariff rates subject to the discounts as agreed at the time of booking of rooms. Under these circumstances, the assessee deserves to be given the benefit of the circular No.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brief are that the assessee filed its return of income on 30.09.2013 declaring his total income of ₹3,51,35,100/-, which were processed under section 143(1) of the Act. Thereafter, the case of the assessee was selected under scrutiny and statutory notices were issued and served upon assessee. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has paid ₹4,68,543/- towards rent of hotel accommodation to Royal Bombay Yacht Club on which no TDS was deducted. Accordingly, a show cause was given to the assessee as to why the same should not be disallowed under section 40(a)(ia) of the Act for non-deduction of Tax Deducted at Source. The assessee replied the show cause vide letter dated 12.02.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f casual / occasional nature and not regular one. Besides the available of rooms are allotted to the consultant by the said club. Therefore, provision of section 194(I) of the Act are not applicable to assessee. The learned AR also made alternative submission that these charges were paid by the consultant to the club and thereafter reimbursed by the assessee and thus, there no allowable can be made as the TDS is not applicable on the reimbursement of charges. The learned AR also referred to the decision of Co-ordinate Bench in the case of Red Chillies Entertainment Pvt. Ltd. vs. ACIT in ITA No.6655/Mum/2014 for Assessment Year 2005-06 vide order dated 28.02.2017, wherein identical issue has been decided in favour of the assessee. 5. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and so ground of appeal raised by the appellant is dismissed. 6. After taking into account the facts of the case in the light of the circular and the decision as cited above, we note that the accommodation was booked by the assessee in the club not on a regular basis but on casually and occasionally as and when the foreign consultants visits the assessee in connection with assessee s business. We are quite convinced with the arguments of the learned Counsel that this accommodation is occasional/ casual as no specific accommodation is earmarked and the same is made available to the assessee on the availability basis. In our opinion, the case is squarely covered by the decision of co-ordinate Bench in the case of Red Chillies Entertainme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d when available basis, corresponding to the date of shooting. There was no contract for any specific rates or period and thus TDS was not required to be made u/s 194I. 32. We have gone though the orders passed by the lower authorities and facts brought before us on the basis of bills of hotels and other evidences. It is noted that nothing has been brought before us to show that assessee had entered into any prior contract with the hotels for any specific room or rooms for any specific rates or rooms for any specific period. The rooms were hired on as and when available basis at the regular tariff rates subject to the discounts as agreed at the time of booking of rooms. Under these circumstances, the assessee deserves to be given the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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