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TMI Blog2013 (6) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, 1961 in respect of payments made to various hospitals. The appellant submits that they are not liable to deduct tax at source on such payments to the hospitals and hence there is no default on the part of the appellant and the provisions of Section 201(1) can not be invoked. The appellant prays that the provisions of Section 201(1) is not applicable on the facts of the case and there is no default of the part of the appellant in terms of Section 201(1) of the Income Tax Act, 1961. 2. The appellant prays that they have not availed any professional services as contemplated u/s. 1 94J of Income-tax Act, 1961 and hence are not liable to deduct tax at source in respect of the payments made to the hospitals. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant also prays that the learned Assessing Officer has wrongly calculated the interest u/s. 201(lA) at Rs. 3,42,092/-. The interest levied u/s. 201(1A) may be deleted." 2. In sum and substance in the grounds of appeal, following three issues are involved: "a. Whether provisions of Sec.194J is applicable on payment made to the hospitals/nursing homes by the appellant. b. Without prejudice to above, the deductor cannot be called upon to pay the tax, if the deductees i.e. hospitals, nursing homes have paid such tax in view of decision of the Hon'ble Supreme Court in the case of Hindustan Coco Cola Beverages Pvt Ltd. c. The calculation of interest amount levied u/s.201(1A) by the Assessing Officer for non-dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbay High Court in the case of Dedicated Health Care Services TPA vs. ACIT, 324 ITR 345(Bom), wherein, the Hon'ble High Court has held as under: "Where the provision of medical services takes place within the institutional framework of the hospital, services were rendered as part of an umbrella of services provided by the hospital which engages qualified medical professionals who practice the medical profession. There were services rendered in the course of carrying on the medical profession. Hence, TPAs, when they made payment to hospitals were liable to deduct tax at source under the provision of Sec. 194J" 6. In view of above decision of Hon'ble High Court, we observe that ld CIT(A) has rightly held that assessee was requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO with a direction that AO will examine the said certificate, issued by the Assessing Officer of the payees for nondeduction of TDS, as may be produced by the assessee and due credit may be given by him to the assessee. 9. Similarly, in respect of payments which were less than Rs.20,000/-, we agree that there is no obligation to deduct TDS and the AO will consider the same on receipt of details from the assessee. 10. Ld A.R. further submitted that in respect of payments of Rs.89,61,485, assessee produced certificates of the auditors that such payments have been made by the deductee i.e. payee in their returns filed. AO did not give credit to the assessee while computing the amount on which TDS was not deducted. 11. We observe that ld C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . also conceded that assessee is also liable to pay interest u/s.201(1A) of the Act on the TDS payable on Rs.7,34,60,140 and is also liable to pay interest on the TDS payable of Rs.89,61,485 till the date of payment of tax thereon by the deductee. Ld D.R. has no objection to that extent subject to the condition that assessee should furnish the requisite certificates as per CBDT Circular No.8 of 2009 dated 24.11.2009. 13. We agree with above contention of ld A.R. and, accordingly, restore the issue to the file of AO with a direction to calculate the TDS payable by the assessee and the liability of interest u/s.201(1A) of the Act subject to the observations made hereinabove after giving due opportunity of hearing and also considering such ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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