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2023 (1) TMI 208 - AT - Income TaxTDS u/s 195 - withhold tax on the payments made to the MRI company - assessee contended that it is acting as a collection agent on its behalf - HELD THAT:- This issue has thus not been examined by the CIT(A). Before us also, the assessee has only placed on record the MOU between the Hospital and the MRI company. No further details with regard to the collections made, corresponding payments to the MRI company, ledgers etc. has been provided which would substantiate their contention that these payments were collected/recovered on behalf of the MRI company and that the company did not retain any mark-up or profit therein (except their fixed fee of Rs.25 lacs). The assessee has also not placed copies of sample invoices and/or the copies of MRI reports issued to the patients which would substantiate its contention that the privity of contract was between the patients and the MRI company and not the patients and the assessee. For instance, whether the test reports are given by the MRI Centre directly to the patients referred to by the assessee hospital or are they issued to the assessee hospital by MRI Centre, who in turn issue the test results in their own letterheads. It is thus noted that none of these aspects have been looked into by the lower authorities. Neither the assessee nor the lower authorities have been able to bring on record the correct facts as to the relationship between the assessee and the MRI company viz., whether it is a principal-agent or principal - principal relationship. Hence, the contentions raised by the assessee before us remains unsubstantiated and unverified. Upon query from the Bench, the Ld. AR had claimed that the MRI company had deducted taxes on the fees of Rs.25 lacs paid to the Hospital for the collection & supervisory services rendered by it, but no evidence in support thereof was placed before us. According to us, all these factors needs to be analyzed to decide about the nature of relationship and the relevant facts needs to be ascertained as to whether the payments were in the nature of reimbursements or not. The questions raised before us are mixed question of facts and law. Since none of the above aspects and the relevant facts have been properly looked into and examined by the lower authorities, in the fitness of the matters, we consider it fit to set aside the issue back to the file of the AO to examine this issue afresh. Accordingly, we set aside the order of Ld. CIT(A) on this issue and restore the same to the file of the assessing officer with the direction to examine the same in the light of discussions made supra as well as based on judicial precedents. The assessee is also directed to furnish all the relevant facts and explanation called for by AO and the assessee is at liberty to file relevant evidences/ documents/ written submission/ case laws relevant to this issue. Appeals of the assessee are allowed for statistical purposes.
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