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2019 (2) TMI 1454 - HC - Income TaxTDS u/s 192 OR 194J - payment to Hospital Based Consultants (HBCs) / Doctors - Employee employer relationship exists or not - HELD THAT:- We find that a Division Bench of this Court in the case of Commissioner of Income-tax (TDS Pune) v/s GRANT MEDICAL FOUNDATION (RUBY HALL CLINIC) (2015 (2) TMI 457 - BOMBAY HIGH COURT) and to which one of us was a party (S. C. Dharmadhikari, J), was considering whether the Tribunal was correct in holding that there exists no relationship of employer and employee between the assessee – Grant Medical Foundation (Ruby Hall Clinic) and the Consultant doctors employed in the hospital. Assessee treated the same as professional services and deducted TDS u/s 194J - After perusing the law on the subject, this Court answered the aforesaid question in favour of the assessee and against the revenue. TDS u/s 194C OR 194J - Payments made to Hinduja TMT/Global Solution Ltd. towards call centre expenses - HELD THAT:- After examining the record that the CIT (Appeals) as well as ITAT came to the conclusion that the services that were rendered by these two entities were not of a technical or professional nature that would require deduction of TDS under Section 194J. The CIT (Appeals) specifically came to the conclusion that the contract between the assessee and these two entities was in the nature of a 'works contract' and therefore the deduction of TDS under Section 194C was correctly done by the assessee. In these circumstances, we do not find that these factual findings suffer from any perversity that would give rise to any substantial question of law. TDS u/s 194C OR 194H - Drug Handling Charges paid - HELD THAT:- We are fully satisfied that in the facts of the present case, the assessee correctly deducted TDS under section 194C. We find that in the present case there was no question of payment of any commission to Saxsons Biotech which supplied the radioactive drug used by the assessee in Nuclear Medicine Treatment. The facts and as recorded by the authorities below would clearly show that the drug supplied by Saxsons Biotech to the assessee was invoiced by Saxsons Biotech in the manner set out earlier. This being the case, there was no question of such a payment being in the nature of commission that would require deduction of TDS under Section 194H. TDS u/s 194J - Payments made to Hinduja Foundation for its employees who had rendered services to the assessee in key managerial positions - HELD THAT:- On going through the findings given by the CIT (Appeals) as well as the ITAT on this issue, we find that both the authorities below have given their findings on the basis of facts presented before them. We find that the authorities below are fully justified in coming to the conclusions that they did, namely, that the payments made by the assessee to the Foundation was in the nature of reimbursement and not in the nature of any technical or professional services which required deduction of TDS under Section 194J. Orders u/s 201 (1) for the Financial Year commencing from 1st April, 2007 and earlier years as time- barred - HELD THAT:- As per the said provisions and as per the Circular of CBDT dated 5/2010, the time-limit for passing such orders was 31st March, 2011. Considering the answers that we have already given to Questions (a) to (d) above, and considering that TDS was deducted under the correct provisions of the I.T. Act, this question really becomes academic in the facts of the present case. We, therefore, do not propose to give any finding on this question and leave it open to be considered in an appropriate case.
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