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2015 (2) TMI 164 - AT - Income TaxNon deduction of TDS u/s 194J - payments made to various policy holders, as well as to various hospitals on behalf of the insurance companies - Held that:- It is nobody’s case that a patient or a policy holder would be covered within the term “business or profession”. A policy holder has not received the payment for rendering services in the course of carrying on medical profession or other professions. The patient is the receiver of the service but not a professional service provider. Be it as it may, what is paid to the patient or a policy holder is reimbursement of the cost incurred. Hence there is no element of profit embedded in the amount in question. Under those circumstances, when there is no income element in the sum of payment the question of Tax being deducted at source does not arise. Whether certificate issued by the CAs would be sufficient compliance for the purpose of taxes paid by the deductees. - Form No.26A of the IT Rules specify that the certificate should be given by a CA - Held that:- The Revenue tries to make a distinction between an auditor and a C.A. Form no.26A, which is a form for furnishing Accountants Certificate under the First Proviso to Sub Section of S.201 of the Act refers to a C.A. within the meaning of the Chartered Accountants Act, 1949. The Circular nowhere specify that the Certificate should be given by the statutory auditor of the payee hospitals. The purpose is to verify whether the payee has paid the tax or not. In our view such interpretation sought to be placed by the revenue is unwarranted. On facts, the AO has not found any defect during the verifications of these Certificates given by the C.A. of the payee hospitals/nursing homes. There is no finding given by the AO that these CAS are not the auditors of the payees or nursing homes, nor that this is not sufficient evidence for the purpose of reducing the demand. In fact he reduced the demand after verification. In our view such ground is unnecessary and hence we dismiss the same. - Decided in favour of assessee.
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