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2019 (11) TMI 1241 - AT - Income TaxOrder u/s 201(1) and 201 (1A) - period of limitation - Time limit for completion of assessment, reassessment and recomputation - HELD THAT:- AO has passed the orders for the assessment years 2005-06 to 2009-10 beyond the period of limitation, as canvassed by the assessee, supra, and therefore these orders cannot stand in the eye of law. In view of the above, the orders of both the authorities below are set aside and the tax and interest demand for the assessment years 2005-06 to 2009-10 are deleted. TDS U/S 194J - TDS on payment to hospitals for rendering medical services to policy holders under various health insurance policies issued by several insurers - levy of interest u/s. 201 (1A) - HELD THAT:- Third party administrator, who is responsible for making payment to hospitals for rendering medical services to policy holders under various health insurance policies issued by several insurers, he is obliged to deduct tax at source U/s.194J from the payments made to hospitals. Therefore, we do not find any merit in the submission of the assessee and hence, the corresponding grounds of the assessee are dismissed. With regard to the levy of interest U/s.201A, we find that this assessee’s case is almost on similar facts and circumstances and hence in line with the decision canvassed by the assessee, supra. Therefore following that case, we hold that 90% of the advanced tax must have been paid by those hospitals and therefore we direct the Assessing Officer to levy the interest on the shortfall of 10% of TDS amount up to the date of filing of returns by the deductees U/s.201(1A). To this extent the assessee’s appeal is allowed for assessment year 2010-11.
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