TMI Blog2023 (9) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... sons, therefore, the regress of section 194I or 40a(ia) is not applicable. The assessee also filed copy of the rent agreement executed by four different persons. We find that the ld Pr CIT has not given his finding on the reply of the assessee. Before us, assessee filed copy of rent agreement showing the tenancy of assessee with four different landlords/owners. Assessee also shown evidence of payment of rent to different four persons @ Rs. 96,000/- per annum only. Such payment of rent to four different persons are clearly disenable in the bank account of assessee. Thus, the threshold limit of attracting the provisions of Section 194I of the Act is not applicable on the payment of rent by assessee, thus, in our considered view, the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s selected for scrutiny. Assessment was completed under Section 143(3) r.w.s. 143(3A) and 143(3B) of the Act on 15/02/2021 in accepting return of income of assessee. The Assessing Officer while completing the assessment order noted that notice under Section 142(1) of the Act dated 10/11/2020 was issued to assessee through National e-Assessment Centre, Delhi for furnishing reason for reduction of profit because of application of ICDS as per item No. 13(E) of audit report and furnishing computation of income, details of opening and closing stock. The assessee replied and uploaded the required details, accordingly, the Assessing Officer accepted the returned income of assessee. 3. The assessment order was revised by ld. Pr.CIT-1, Surat vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /4029 and Rs. 96,000/- to Purshotam Agarwal for shop No. 4026/4027 per annum, all in Silk Plaza Market, Ring Road, Surat. The assessee submitted that there is no failure on part of assessee to deduct the tax as the provisions of Section 194I and 40(a)(ia) nor contravened as the payments were made to four different persons for four different premises, hence, the limit of Rs. 1.80 lacs applied for each four persons individually. 5. The reply of assessee was not accepted by the ld. Pr.CIT. The ld. Pr.CIT held that the Assessing Officer has not enquired/verified the issue of payment of rent of Rs. 3,84,000/- and the relevant issue was not available on record. Further the assessee failed to provide godown document to prove the ownership of fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent units/shops bearing No. 4026 to 4033, Silk Plaza Market, Ring Road, Surat, vide agreement dated 01/07/2017, copy of such agreement is placed on record. The assessee paid rent to four different persons @ Rs. 96,000/- per annum. The assessee has also filed his bank statement showing the payment of Rs. 96,000/- each to all four persons. The ld. AR of the assessee while referring the bank entry has invited the attention of the Bench and shown the payment of rent in his bank statement. In one of the entry, the bankers of assessee has clearly mentioned as rent. The assessee has also filed his ledger account showing the payment to four different persons. The ld. AR of the assessee submits that the order is not prejudicial to the interests of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the issue of claim rental expenses in the assessment order, identified by the ld. Pr.CIT. The ld Pr CIT identified the issue with regard to applicability of TDS Proviso on the rental expenses incurred by assessee which were more than Rs. 1.80 lacs per annum. The assessee in his reply before ld Pr CIT has clearly submitted that he had paid the rent to four different persons, therefore, the regress of section 194I or 40a(ia) is not applicable. The assessee also filed copy of the rent agreement executed by four different persons. We find that the ld Pr CIT has not given his finding on the reply of the assessee. Before us, the ld. AR of the assessee filed copy of rent agreement showing the tenancy of assessee with four different landlord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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