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2018 (10) TMI 191 - HC - Income TaxTDS u/s 194J - Addition u/s 40(a)(ia) - failure to deduct the tax on the hospital charges - assessee is appointed by various insurance companies to disburse amounts under what is styled as Mediclaim Insurance Policy - Held that:- The Tribunal found that the assessee is only facilitating the payment by the insurer to the insured for availing the medical facilities. The assessee is not rendering any professional services to the insurer or the insured and is only collecting the amount from the insurer and passing it on to various hospitals who were providing medical services to the insured. This is greatly distinct from the issue raised before the Division Bench and discussed and deliberated upon by it in terms of the Revenue's circular. The Tribunal found that for the transactions as are brought before it and equally before us now, there is no claim of expenses by the assessee and which was disallowed. The issue would have been different if the amounts were paid and in terms of Section 194J. We cannot deviate or depart from the view taken by the Division Bench of this Court in Health India TPA Services [2014 (2) TMI 1153 - ITAT MUMBAI] as held assessee is only facilitating the payments by insurer to the insured for availing of the medical facilities. The 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 under section 40(a)(ia) as was done by the Assessing Officer does not arise. - Decided against revenue
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