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2018 (2) TMI 1522 - AT - Income TaxTDS u/s 194J OR 194C - short deduction in respect of payments made towards “Outsourcing expenses” - assessee in default - Held that:- A sum as been paid by the assessee to Renaissance Insurance Services for this purpose. As per schedule to the agreement dated 01.08.2007 entered into with the aforesaid vendor, digitization of records involved scanning and uploading of proposal forms, premium instruments, annexures, endorsement requests, policy receipts, policy copy as per the instructions given by the company, claim intimation, discharge vouchers, query letters, claim payment advice, claim closure letters, etc. In other words, these would be digitization of documents that are generated by an insurance company in the normal course of its functioning. The assessee stated that digitization facilitated for easy retrieval of records at the time of renewal and claim, besides helping in saving storage cost. CIT(A) while evaluating the nature of services stated in para 4.4 to 4.6 falls for deduction of tax u/s.194J. However, in respect of services mentioned in para 6.4.2, the same falls in the nature of work contract liable for deduction of tax u/s.194C. The detailed finding so recorded by CIT(A) has not been controverted by learned AR or by learned DR. Accordingly, we do not find any reason to interfere in the order of CIT(A).
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