Section 194C, 194I of Income Tax Act, 1961— TDS— In the instant case, assessee challenged the Order of the Ld. CIT(A) in holding the expenses on Advertising and Exhibition of Rs. 4,04,496/- covered under section 194C instead of under section 194-I of the Income Tax Act, 1961.

The assessee paid the amount for giving stall for exhibition. The assessee had paid Rs. 4,04,496/- to Jewellery Market Exhibition for giving stall for exhibition. It deducted TDS @ 2% under section 194C. The A.O. held that tax was deductible under section 194-I @ 10%, as the amount paid was in the nature of rent paid for stall.

Held that— space is allotted to the assessee for carrying-out its business activities. Thus, a property for a limited time have been rented out to the assessee. Thus, the assessee were liable to deduct TDS under section 194-I of the I.T. Act. In the absence of any evidence on record, no interference is called for in the matter.

In the next ground assessee challenged the Order of the Ld. CIT(A) in confirming the addition of Rs. 2,00,193/- under the Head “Printing and Stationery”. The A.O. held that tax was deductible under section 194C of the act.

Held that— The Ld. CIT(A) specifically found that assessee has claimed these expenditure in its books of account. It was further found that the payment is shown in the name of M/s. Balaji and M/s. Allshreshtha who have provided the services to the assessee and not in the name of the customers. The finding of fact recorded by the Ld. CIT(A) have not been rebutted by the assessee in any manner. Therefore, contention of assessee that it was reimbursement of expenses is without any basis. The assessee was, thus, liable to deduct TDS under section 194C of the acct.[M/S. OTM JEWELLERY PVT. LTD. VERSUS THE INCOME TAX OFFICER, WARD-76 (2) , NEW DELHI.] [2019] 17 ITCD Online (38) [ITAT DELHI]