DCIT TDS 1(2), MUMBAI vs. EMIRATES, MUMBAI

This appeal filed by the Revenue on 30.7.2015 is against the order of the CIT (A)-59, Mumbai dated 12.5.2015 for the assessment year 2012-2013.

Revenue raised this appeal in connection with the order of the AO u/s 201(1)/ 201(1A) of the Act. In this appeal, Revenue raised three grounds in toto. The issue raised in the appeal relates to the correctness of the AO‟s finding that the „facilitation charges / Passenger Service Fee‟ constitutes „rent‟ within the meaning of section 194I of the Act. 3. Before us, Ld Counsel for the assessee brought our attention to the order of the CIT (A) (paras 4.1 to 4.5 of the CIT (A)‟s order are relevant) and traced how the similar issue came up before the Tribunal in the case of Jet Ariways, and was decided in favour of that assessee. Further, bringing our attention to the another order of the Tribunal in ITA No.6397/M/2014, dated 3.1.2013 in the assessee‟s own case for the AY 2011-2012 and submitted that Revenue‟s appeal was dismissed on an identical issue. In this regard, Ld AR read out the contents of para 4 of the Tribunal in the assessee‟s own case (supra). 4. After hearing the Ld Representatives of both the parties and on perusal of the orders of the Revenue Authorities as well as the cited decisions of the Tribunal (supra), we are of the view that the issue now stands covered in favour of the assessee and the said Passenger Service Fee / Facilitation Charges do not constitute „rent‟ and the provisions of section 194I of the Act do not apply. Accordingly, all the grounds raised