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INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI

BENCH: SMC

BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER

ITA 2305/MUM/2026 निर्धारण वर्ा/Assessment Year: 2012-13)

S H DONUT EMPIRE INDIA ADDL/JCIT (A)-1 PRIVATE LIMITED OFFICE OF THE

G-1, S.H.RAM BUILDING ,RAOD COMMISSIONER OF INCOME NO 18-A KHAR WEST, MUMBAI- Vs. TAX, APPEAL

400052, MAHARASHTRA HYDERABAD-500001, TELANGANA

अपीलध्ቕी Appellant ्ቚ्ቓ्ቕी Respondent

Permanent Account Number of Assessee: AANCS6071K

अपीलध्ቕी ्ቛारा/Appellant represented by: None ्ቚ्ቓ्ቕी ्ቛारा/Respondent represented by: Shri Brajendra Kumar ( SR. DR. )

सुनवाई की तारीख / Date of conclusion of hearing: 18-Jun-2026 घोषणा की तारीख / Date of pronouncement: 06-08-2026

आदेश / ORDER

PER SHRI SANDEEP GOSAIN, JUDICIAL MEMBER

This appeal is filed by the Assessee against the order of Ld. ADDL-

JCIT (A)-1 vide DIN: ITBA/APL/S/250/2025-26/1084095546(1) dated 19- Feb-2026 for the Assessment Year 2012-13. The Assessee has raised the

following grounds of appeal:

1. Reimbursement of Expenses outside the Definition of Rent u/s 1941 of the Income Tax Act

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ITA 2305/MUM/2026 S H DONUT EMPIRE INDIA PRIVATE LIMITED

Liability of actual expenses is upon Petitioner specifically mentioned in Agreement Para 7 and Para 11. Supported by Separate Bills. Company itself neither generate and supply

electricity nor water nor maintain the lift. Expenses are of Indivisible Nature.

2. Separate Invoice being issued by the Conductor for Conducting Fees and Reimbursement of Expenses

Separate bills have been issued by the Conductor with respect to the Reimbursement of Expenses, hence no TDS is not deductible on such Expenses. ITO has erred by invoking the

provision of section 1941 in the context of Reimbursement of Expenses.

3. No separate Agreement is made by the Conductor for the Common Area Maintenance (CAM) Charges, water charges and electricity charges.

ITO has failed to take cognizance of the Agreement being only one for the Rent and the Reimbursement of Expenses of Common Area Maintenance (CAM) Charges, water charges

and electricity charges.

4. Order passed on the basis of Predecessors assumptions

ITO has failed to take cognizance of the submissions and has passed the Order on the basis of the Predecessors assumptions and also on basis of Assessment Order of AY 2011-12. It

is not based on Merits.

2. None appeared on behalf of the assessee when the case was called out repeatedly.

3. On the other hand, the learned DR present in the Court was ready with the arguments; therefore, I have decided to proceed with the hearing of the

appeal ex parte.

4. All the grounds raised by the assessee are interrelated and relates to challenging the order of the learned CIT(A) in upholding the order of the AO by invoking the provisions of section 194I of the Act in the context of reimbursement of expenses, thereby making the addition. Thus, I have decided to adjudicate these grounds through the present consolidated order.

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ITA 2305/MUM/2026 S H DONUT EMPIRE INDIA PRIVATE LIMITED

5. I have heard the learned DR and perused the material placed on record. From the records, I notice that the learned CIT(A) has dealt with this ground in paragraphs 7 and 8 of his order and the same is reproduced herein below:

7.0 ANALYSIS OF THE FACTS & ADJUDICATION OF THE GROUNDS:

The grounds of appeal, statement of facts, written submissions, paper book, and the documentary material placed on record have been carefully examined. The appellant has challenged the order passed under sections 201(1) and 201(1A) primarily on the plea that payments made towards Common Area Maintenance (CAM), electricity and water charges constitute mere reimbursements and therefore fall outside the ambit of "rent" under section 194-1. The said contentions are not acceptable for the reasons

discussed hereunder.

The proceedings originated from a TDS survey conducted in the case of Runwal Group, during which it was noticed that various mall occupants, including the appellant, had been making payments towards