DCIT, CIRCLE-73(1), DELHI vs. CANON INDIA PRIVATE LIMITED, DELHI

ITA 5588/DEL/2025Status: DisposedITAT Delhi17 February 2026AY 2013-14Bench: BEFORESHRI SATBEER SINGH GODARA (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that CAM charges are not in the nature of rent but are contractual payments for services rendered. Therefore, TDS on such charges is deductible under Section 194C of the Income Tax Act at 2%, not under Section 194-I at 10%. The Tribunal relied on its previous decisions in similar cases.

What were the facts?

The Revenue appealed against the CIT(A)'s order, which had reversed the Assessing Officer's (AO) finding that the assessee was in default for not deducting TDS on common area maintenance (CAM) charges. The AO had treated these charges as part of rent and liable for TDS under Section 194-I of the Income Tax Act.

What were the issues?

Whether common area maintenance (CAM) charges are to be treated as rent for TDS purposes (Section 194-I) or as contractual payments for services (Section 194C).

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 194-I,Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “F” NEW DELHI

For Respondent: Ms Harpreet Kaur Hansra, Sr. DR
Hearing: 17.02.2026Pronounced: 17.02.2026

PER SATBEER SINGH GODARA, JUDICIAL MEMBER This Revenue’s appeal for assessment year 2013-17, arises against the Commissioner of Income Tax (Appeals), ADDL/JCIT(A)-1 [in short, the “CIT(A)/NFAC”], Nagpur’s DIN and order No. ITBA/APL/S/250/2024-25/1070020673(1), dated 29.10.2024 involving proceedings under section 201(1)/201(1A) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

2.

It transpires that during the course of hearing that the Revenue/appellant herein seeks to reverse the CIT(A) action holding that the assessee is not liable to deduct TDS on a common maintenance charges “CAM” as per the Assessing Officer

The order continues below.

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