2012 (11) TMI 1163

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2007-08. 2. In this appeal, the solitary dispute relates to the disallowance of Rs. 46,92,094/- by invoking section 40(a)(ia) of the Act on the ground that assessee had not deducted the requisite tax at source on the impugned amount representing service charges paid to KEM Hospital. 3. In brief, the facts are that assessee is a partnership firm carrying on the business of running a Diagnostic Centre in the premises of KEM Hospital, Pune. The assessee paid a sum of Rs. 46,92,084/- as service charges to KEM Hospital for use of the premises for running a Diagnostic Centre. The Assessing Officer held that it was a professional arrangement and the payment made fell within the ambit of sec. 194-J of the Act, which required deduction of tax ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Counsel for the assessee submitted that without prejudice to the assessee's plea that the impugned payments to KEM Hospital were outside the provisions of deduction of tax at source, no disallowance u/s 40(a)(ia) of the Act was merited, inasmuch as, the entire amount was actually paid by 31-3-2007 and nothing remained outstanding as at the end of the previous year relevant to the assessment year under consideration and for the aforesaid reason, section 40(a)(ia) of the Act could not be invoked. In support of the proposition, reliance has been placed on the decision of Special Bench of Vishakhapatnam Tribunal in the case of Merilyn Shipping & Transports (146 TTJ 1) (SB) Vishakhapatnam. Further to substantiate the position that the amount has....