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2014 (2) TMI 1341 - AT - Income TaxTDS u/s 194J - non deduction of tax at source on the hospital charges - disallowance made u/s 40(a)(ia) - Held that:- As decided in the assessee’s own case the 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(a)(a) as was done by the AO does not arise. It may be different issue that the amounts paid may be covered by provisions of sec. 194J as was held by the Hon’ble Karnataka High Court in the case of – The MediAssesst India TPA P Ltd vs DCIT-18(1), Bangalore (2009 (8) TMI 85 - KARNATAKA HIGH COURT) relied upon by the AO. In that case, provisions of section 201 was applicable but certainly disallowance u/s 40(a)(ia) does not arise as assessee is not claiming any such expenditure in its P&L account. Moreover, revenue accepted the order of CIT(A) in earlier year.- Decided against revenue
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