TMI Blog2014 (2) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee has not rendered any professional services to the insurer or insured and only collecting the amount from the insurer and passing it on to various hospitals who were providing medical services to the insured. Since, there is no claim of expenditure by the assessee, disallowance u/s 40A(a)(a) as was done by the AO does not arise. It may be different issue that the amounts paid may be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 passed by the ld CIT(A) 4 Mumbai and it relates to the AY 2008- 09. 2. The solitary issue raised in this appeal is whether the ld CIT(A) was justified in deleting the disallowance made u/s 40(a)(ia) of he Act for non deduction of tax at source u/s 194J of the Act on the hospital charges paid by it, by disregarding the Circular No.8 of 2009 dated 24.11.2009 issued by CBDT. 3. The fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r debits the payments to the P L Account. The AO held that payment made to the Hospitals by the assessee is covered u/s 194J and accordingly took the view that the assessee should have TDS from the payments to made to the hospitals. Since the assessee did not deduct tax at source, the AO disallowed such payments by invoking the provisions of sec. 40(a)(ia) of the Act. 4. In the appellate procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is only facilitating the payments by insurer to the insured for availing the medical facilities. Assessee has not rendered any professional services to the insurer or insured and only collecting the amount from the insurer and passing it on to various hospitals who were providing medical services to the insured. Since, there is no claim of expenditure by the assessee, disallowance u/s 40A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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