TMI Blog2023 (10) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... the Grounds of appeals of the Assessee and set aside the impugned order and direct the AO to re-compute the CAM charges, taking into consideration the two sections mentioned above. - Shri G.S.Pannu, President And Shri Yogesh Kumar U.S., Judicial Member For the Appellant : Sh. V. Rajkumar, Advocate For the Respondent : Sh. Amit Katoch, Sr. DR ORDER PER YOGESH KUMAR U.S., JM: The both appeals filed by the assessee are against the common order of Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC) Delhi [ Ld. CIT(A) , for short], dated 28/12/2022 for Assessment Years 2013-14 2014-15 respectively. 2. The common grounds taken in both appeals which are as under: 1. On the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced an affidavit of one Mr. Himanshu Sood confirming the averments made by the assessee. For the reasons stated in the application for condonation of delay, the delay of 115 days in filing the above captioned appeals are condoned. 4. Brief facts of the case are that, the Assessing Officer passed orders u/s 201(1)/201(1A) computing the total income of the assessee at Rs. 38,35,746/- on 26/03/2021 for Assessment Year 2013-14 and also computed income at Rs. 78,38,564/- on 25/03/2022 for Assessment Year 2014-15 by holding that the payment made by the assessee in the nature of Common Area Maintenance (CAM) which essentially part of rental activities are covered u/s 194-I of the Act. The A.O. treated the Assessee as Assessee in default withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or consideration in the above Appeals is that whether the provisions of Section 194-I of the Act are applicable to Common Area Maintenance Charges and whether the same has to be treated as part of Rent or not. The Co-ordinate Bench in the case of Yum Restaurants India (P) Ltd. [ITA No. 1115/Del/2020 for A.Y 2012-13] while deciding the similar issue in favour of the Assessee held that the provisions for rent are governed by Section 194-I and CAM charges by Section 194C of the Act in following manners:- 6. The undisputable fact in this case is that while the lease rentals are paid based on a fixed percentage on the net revenue, the CAM charges are based on the per sq. ft. area. The observation of the ld. CIT(A) is that the rent by any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in Yum Restaurants India case (Supra) consequently we are inclined to direct the AO to recompute the tax liability accordingly. 9. By respectfully following the order of the Co-ordinate Bench in the case of Yum Restaurants India (supra) and also the order passed in Assessee s own case for A.Y 2012-13, we hold that the provisions for rent are governed by Section 194-I and CAM charges by Section 194C of the Act, accordingly, we allow the Grounds of appeals of the Assessee and set aside the impugned order and direct the AO to re-compute the CAM charges, taking into consideration the two sections mentioned above. 10. In the result, Appeals filed by the assessee in ITA No. 1869/Del/2023 and ITA No. 1870/Del/2023 are allowed. Order p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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