9911796707
TMI Blog2021 (12) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... s conducted in the case of respondents on 20/11/2009. A show cause notice for default under Section 201(1) of the Act was issued on 10/3/2010. It is stated by appellant that during the course of survey, Assessing Officer noticed that while making payment of insurance commission to its agents, the assessee deducted TDS on the net amount of insurance commission after excluding the service tax component. Assessing Officer opined that TDS was required to be deducted on the gross insurance commission including the service tax component as required under Section 194D of the Act. 2. Assessing Officer also noticed that respondent had made payments on account of usage/hiring of hardware/software etc and the expenses were treated as contractual expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the service tax on insurance commission to the life insurance agent is the liability to the respondent and it cannot be considered as income in the hands of agents and hence no tax was required to be deducted at source under Section 194D of the Act on the service tax component. CIT (A) directed that the demand of tax to that extent be deleted. 5. With regard to payments on account of hiring of hardware/software, CIT(A) held that the same was not in the nature of professional and technical services as construed under the provisions of Section194J of the Act and hence, provisions of Section 194J of the Act are not applicable and that the respondent had correctly deducted TDS under Section 194C of the Act. CIT(A) deleted the demand raised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by this order of ITAT the appellant has preferred this appeal where following substantial questions of law are raised: a) Whether there is error of law apparent on the face of record ? b) Whether the Hon'ble Tribunal failed to appreciate that the provision of the section 194D of the I. T. Act r/w. Section 68 (payment of service tax) of Service Tax Act, from which it is clear that the service tax component is an integral part of value of expenses in respect of a taxable service. During the year under consideration, assessee has paid service tax on commission to agents, but assessee has excluded the amount of service tax from gross insurance commission and deducted TDS on net insurance commission. However, as per the provisions of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that decision of ITAT in M/s. Reliance Life Insurance Co. Limited in three appeals bearing Income Tax Appeal Nos.604/2017, 596/2017 and 612/2017 before this court. This court by its order dated 10/6/2019 dismissed all the three appeal filed by Revenue. Therefore counsel submitted that questions b, c, d and e will no more be substantial questions of law. 11. As regards question (a), we concur with the view expressed by the ITAT. Section 194D reads as under: "194D. Any person responsible for paying to a resident any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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