Allowing the appeal the Tribunal held that the assessee had paid rent to the owner after deduction of tax at source under section 194-I of the Act and the payment for operation and maintenance was made directly to the service providers after deduction of tax at source under section 194C of the Act. The common area maintenance charges did not form part of the actual rent paid to the owner by the assessee. There was a separate agreement between the owner, tenant and service provider for common area maintenance and the Commissioner (Appeals) was not right in confirming the order of the Assessing Officer.( AY.2011-12)
Kapoor Watch Co. Pvt. Ltd. v. ACIT (2021) 85 ITR 32 (SN)(Delhi) (Trib)
S. 194C : Deduction at source – Contractors – Payment of common area maintenance charges for operation and maintenance of Mall — Payment made directly to service providers — Not part of rent paid to owner —Provision of section 194I is not applicable [ S.194I , 201(1)]