TMI Blog2013 (6) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ,92,48,570 is ₹ 7,34,60,140 on which assessee is liable to pay TDS & also conceded that assessee is also liable to pay interest u/s.201(1A) on the TDS payable on ₹ 7,34,60,140 and is also liable to pay interest on the TDS payable of ₹ 89,61,485 till the date of payment of tax thereon by the deductee. 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 - 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) subject to the observations made hereinabove after giving due opportunity of hearing and also considering such evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is not liable to deduct tax at source, on the facts and circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Learned Assessing Officer to the effect that the appellant is liable to deduct tax at source on the gross payments to the hospitals of Rs. 9,92,48,570/- u/s. 194J of Income-tax Act, 1961. The appellant prays that they are not liable to deduct tax at source on the gross payment of Rs. 9,92,48,570/- u/s. l94J of the Income-tax Act, 1961. 4. On the facts and circumstances of the case the appellant submits that the hospitals to whom the payments have been made by the appellant, have included in their respective return of income the said receipts and have paid the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Development Authority (IRDA) underThird Party Administrator Health Services Regulations, 2001. Assessee is engaged in the business of providing health insurance claim services under various health insurance policies issued by several Insurance Companies. Assessee company provides various services to the insurance companies like hospitalization, call centers, cashless access services, etc. The hospitals which are empanelled by the assessee have to provide health care to the individuals i.e. insured persons who require medical treatment. The payments to these hospitals are made by the assessee. Assessee had not deducted TDS on such payments. The Assessing Officer held that the services rendered by the assessee are covered under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal taken by assessee are rejected. 7. In respect of Ground Nos.3 to 5, ld A.R. filed a chart and submitted that assessee made in the assessment year under consideration payment of Rs.9,92,48,570 but cheques of payment of Rs.6,54,765 were cancelled. Hence, the total payments made from 1.4.2009 to 17.9.2009 to the cashless hospitalization claim comes to Rs.9,85,93,805. Ld A.R. submitted that there were certain payments which were less than Rs.20,000/- which aggregate to Rs.15,04,127. He submitted that no TDS was required to be deducted in respect of above payments and AO did not consider the same. Further, ld A.R. submitted that there were exemption certificates received u/s.197 of the Act to the extent of Rs.1,46,68,052. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stated that it is an admitted position of law that wherever assessee company proves that tax has been paid by the deductee, recovery of demand cannot be enforced. Ld CIT(A) has stated that in order to determine whether the deductee has paid the tax or not, a certificate from the auditor of the deductee company stating that tax and interest due from the deductee assessee has been paid for the concerned assessment year would be produced by the assessee company and shall be verified by the Assessing Officer. We observe that ld CIT(A) had directed the AO to give due credit to the assessee if the assessee company produced such certificate and recovery of TDS amount u/s.194J should not be enforced to that extent. We are of the considered view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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