TaxTMI 
TaxTMI 
2022 (5) TMI 99
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....s. 3. The grounds of appeal raised by assessee in A.Y. 2013-14 read as under: "1. Both the lower authorities have erred in law and on the facts of the case in confirming the nature of Service agreement entered by the appellant with various agencies for supply of labour and work as "professional in nature" U/S. 194J instead of 194C while framing the assessment u/s. 201(1)/201(1 A) of the Act and while passing the appellate order under the facts and circumstances of the case the action of both the authority are required to be quashed. 2. The Ld. CIT(A) has erred in law and on facts of the case has confirmed the interest charged U/s. 201 (1A) of IT Act which otherwise not warranted as appellant has rightly deducted and paid required TDS and there is no loss to the revenue. 3. Both the lower authorities have failed to appreciate the facts and nature of work and held as professional work. 4. Both the lower authorities have erred in law and on facts in passing the orders without properly appreciating the facts and that he further erred in grossly ignoring various submissions, explanations and information agreement with various agencies submitted by the appellant from time to tim....
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....otal 117219945 1713314 In this case, the assessee has entered into agreement with the abovementioned entities for the purpose of carrying out screening (i.e. DTT test, HPLC test etc.) of Sickle Cell Anemia in tribal district of Gujarat. It was seen that the function performed by the above entities fall under the purview of professional services/managerial and consultancy services as per section 194J of the Act and therefore liability of the deduction of tax arises @ 10% u/s. 194J instead of u/s. 194C. Section 194J contemplates as under: "[Fees for professional or technical services. 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of- (a) fees for professional services, or (b) fees for technical services[or] [(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or] [(c) royalty, or (d) any sum referred to in clause (va) of section 28,] shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a chequ....
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....tion (I) of section 9; (c) where any sum referred to in sub-section (I) is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly." Section 194C contemplates as under: "194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to- (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-t....
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....r (b) any local authority; or (c) any corporation established by or under a Central, State or Provincial Act; or (d) any company; or (e) any co-operative society; or (f) any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; or (g) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; or (h) any trust; or (i) any university established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a university under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or (j) any Government of a foreign State or a foreign enterprise or any association or body established outside India; or (k) any firm; or (l) any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person,- (A) does not fall under any of the preceding sub-clauses; and (B) is liable....
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.... it is mentioned. 8. After going through the aforesaid service agreement, wherein it is clearly mentioned that: i. assignee has to make required number of teams comprising of one lab tech, two para medical worker and one assistant for entry. ii. Assignee has to make micro planning for screening with help of District Nodal officer and has to work accordingly iii. Before starting the work in the district, Assignee has to do the interdepartmental meeting at district level in the chair of respective CDHO to inform about the detail of screening program. iv. Assignee has to nominate one program coordinator for this entire screening program. He will be contacted by department as and when required. v. Assignee has to do the screening work on all working days during month. vi. Assignee will bring all required lab consumables, stationary, equipment, man power with team at the screening time. vii. Assignee has to advertise widely regarding screening in the village by the mean of miking, folk media, etc. viii. A laboratory technician will be with minimum qualification of MLT/DMLT with science graduate. While para medical workers will be with minimum qualification of SI. ix. ....