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2017 (3) TMI 963 - ITAT MUMBAITDS u/s 194J OR 194C - nature of payment - Held that:- In the case of payment to Mangak Anand Healthcare, Mumbai, work order was issued by the assessee dated 09-01-2004 wherein contract was awarded to the said person by the assessee for running x-ray and sonography services in all four MCH centre for a period of 5 years from the date of signing of the agreement. Thus, the said party was to provide aforesaid services of xray and sonography, etc. at the hospitals run by the assessee. The rates were fixed by the assessee in the work order on per patient basis. It is noted from perusal of para 12 of the said contract that the said party would employ skilled, semi-skilled and unskilled personnel in sufficient numbers to carry out its services at the required rate of progress and of quality to ensure workmanship of the degree specified in the contract for timely fulfilling the obligations of the said party under the contract. Various other clauses of this agreement clearly suggest that there was obligation of carrying out work by the said person in return of a pre-decided rates payable by the assesssee. The overall terms and conditions of the contract and other facts brought before us indicate that it would fall within the nature of ‘work’ as stipulated in section 194C. Similarly, with respect to the other parties also, viz. Gharpure Engineering & Construction (P) Ltd and Ramky Infrastructure Ltd also, perusal of their bills, work orders and agreements clearly indicate that assessee assigned them contract work on turnkey basis for carrying out variety of jobs of civil construction, etc. None of the jobs carried out by these persons would fall in the scope of section 194J. The activities performed by these parties would clearly fall within the definition of ‘work’ as stated in section 194C. - Decided in favour of assessee
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