ORBIT RESORTS LIMITED,CHANDIGARH vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE TDS, GURGAON, GURGAON

ITA 4880/DEL/2025Status: DisposedITAT Delhi21 January 2026AY 2016-17Bench: SHRI ANUBHAV SHARMA, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the payments for AMC of equipment, including day-to-day maintenance, repairs, and upkeep, qualify as 'work' under Section 194C, not as professional or technical services under Section 194J.

What were the facts?

The assessee, a hotel company, made payments for Annual Maintenance Contracts (AMC) for various equipment, deducting TDS at 2% under Section 194C. The AO held that these payments were for technical services and mandated TDS at 10% under Section 194J, deeming the assessee an assessee in default.

What were the issues?

Whether the payments made for Annual Maintenance Contracts (AMC) are classifiable as 'works contract' attracting TDS under Section 194C, or as 'fees for professional or technical services' attracting TDS under Section 194J.

Which sections of the Income-tax Act were involved?

Section 194C,Section 194J,Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI ‘C’ BENCH,

Before: SHRI ANUBHAV SHARMA, & SHRI NAVEEN CHANDRA

For Appellant: Shri Ashwani Kumar, CA, Ms. Deepali Aggarwal, CA
For Respondent: Shri Om Prakash, Sr. DR
Hearing: 26.11.2025Pronounced: 21.01.2026

PER NAVEEN CHANDRA, AM :-

This appeal by the assessee is directed against the order of the ACIT, Gurgaon dated 20.06.2025 pertaining to A.Y 2016-17. 2. Briefly stated, the facts of the case are that the assessee is a limited company engaged in running hotels in Gurgaon. During the year

under consideration the Assessee Company had made payments [A.Y 2016-17] Orbit Resorts Ltd Vs ACIT aggregating to Rs. 2,16,44,982/- on account of Annual Maintenance

Contracts ("AMC") of Computers, DG Set, Elevator, Internet

Telecommunication Services etc. on which it has duly deducted TDS @

2% u/s 194C of the Act.

3.

A survey/inspection was carried out at the assessee company’s

premises on 29.02.2

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 194C

All 2,696 judgments and leading authorities on Section 194C →

Recent GST High Court judgments

Search GST case law →