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TMI Blog2024 (9) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on payment of Common Area Maintenance ('CAM') u/s 1941 of the Act treating the same as payment of rent instead of TDS deducted by the assessee u/s 194C of the Act. 2. That in facts and circumstances of the case and in law, the Ld. CIT (A) has failed to appreciate that the CAM charges paid are for common area services like general security of mall. housekeeping, repair & maintenance and are in the nature of payment to contractors for services and are liable for TDS u/s 194C. 3. That in facts and circumstances of the case and in law, the Ld. CIT (A) has failed to appreciate that CAM charges were paid pursuant to separate agreements against specific invoices and is not in the nature of rent. 4. That on the facts and circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 194C of the Act. 6. We find that the issue involved in this case is covered by a series of decisions of Co-ordinate Benches of ITAT in the case of Connaught Plaza Restaurants P. Ltd vs. DCIT [ITA Nos. 993 & 1984 of 2020), Kapoor Watch Company Pvt. Ltd vs. ACIT (ITA. No. 889/DEL/2020) held as under: "13. In the backdrop of our aforesaid deliberations, we concur with the claim of the id. AR that as the payments towards CAM charges are in the nature of contractual payments that are made for availing certain services/facilities, and not for use of any premises/equipment, therefore, the same would be subjected to deduction of tax at source u/s 194C of the Act. Our aforesaid view is supported by the order of the ITAT, Delhi in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO treating the assessee company as an assessee-in-default u/s 201(1) of the Act. The Grounds of appeal no. 4 to 4.5 are allowed in terms of our aforesaid observations." 7. The Co-ordinate Bench of ITAT in the case of Aero Club vs. Deputy Commissioner of Income-tax (149 taxmann.com 339), dated 28 February 2023, and in Johnson Watch Company Pvt. Ltd. vs. ACIT, ITA No. 1738/Del/2020, where TDS on common area maintenance charges (CAM) @ 2% was upheld in a case where there was a single agreement for payment of rent as well as for CAM charges. 8. Similar, decision has been given by the Co-ordinate Bench oDelhi ITAT in the case of PVR Ltd. v. Assistant Commissioner of Income-tax (ITA No. 7290/Del/2019 and ITA No. 202/Del/2020), dated 9 Febr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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