TaxTMI 
TaxTMI 
TaxTMI 
2016 (7) TMI 178
X X X X Extracts X X X X
X X X X Extracts X X X X
....Companies for settling claims of insured persons under the Mediclaim Insurance Policies. A Survey u/s 133A of the Act was conducted wherein the ld. AO found that the assessee had not deducted tax at source on the payments made by it to various hospitals/nursing homes under the cash-less scheme. According to the ld. AO provision of section 194J of the Act would become applicable on the said payments. In the first round of proceedings, the assessee had preferred a writ before the Hon'ble Calcutta High Court wherein an interim order in WP .No.10 of 2010 dated 06.01.2010 was passed with the following directions :- "So far as the past payments are concerned, since undertaking has been given by the Learned Additional Solicitor general that no c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nly to payments which assumed the nature of "Fees for Professional Services" as noted above. The Assessing Officer shall examine each of payment made by assessee company in the case of "Fees for Professional Services" and in cases where "Fees for Professional Services" exceeds Rs. 20,000/- then only TDS provisions u/s 194J should be applied. Assessing Officer is accordingly directed to amend his order u/s 201 of the LT. Act. Therefore, this ground is partly allowed. 17. In its common grounds of appeal, the appellant has also submitted that the A.O. ignored the binding decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages Pvt. Ltd. reported 293-ITR-226 while raising tax .liabilities on it u/s.201(1)/201(1A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....refore this ground is partly allowed. In the result these three appeals are partly allowed as above." 2.2. Pursuant to the directions of the ld. CIT(A) , the assessee filed a submission dated 3rd June, 2013 before ACIT (TDS) submitting the details available with it and by also stating that the concerned hospitals/nursing homes to whom the payments were made by the assessee were duly assessed to tax and in view of the decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages Pvt. Ltd reported in 293 ITR 226 (SC), the assessee shall not be treated as assessee in default towards the TDS liability. The assessee also placed on record certificates issued u/s 197 of the Act in respect of certain hospitals wherein ther....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssued a letter dated 11.05.2016 directing the assessee to make the entire payment of the outstanding demand within three days from the date of receipt of the said letter. The assessee has preferred the Stay Applications before us for all the three years. The ld. AR argued that the assessee is only an agent of Public Insurance Companies and it cannot be treated as person responsible for deducting tax at source in terms of section 204 of the Act. In any case, the assessee is making the payment on behalf of the insurance companies to various hospitals/nursing homes and these hospitals/nursing homes in turn make payment of professional charges to various doctors which would invariably be below Rs. 20,000/-. Accordingly there was no obligation f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the TDS Wing of the department directing the payers (assessee herein) to deduct 0% tax on payments made to those hospitals were ignored by the ld. AO while passing the order despite the fact that those orders were very much available with him. With regard to the exparte order passed by the ld. CIT(A), he argued that the appeal was filed way back in April 2014 and appeal was listed for hearing for the first time by the ld. CIT(A) in February 2016 and as the assessee was pre-occupied with completion of time barring assessments during February and March 2016, he could not be present before the ld. CIT(A) on the allotted day. He argued that in any case, the ld. CIT(A) ought to have appreciated the fact as to whether the assessment framed by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ain appeals by the tribunal on merits. 3. In response to this the ld. DR vehemently objected to the grant of stay and also stated that even as per the arguments of the assessee, there would be some demand in respect of payments made beyond Rs. 20,000/- to hospitals/ nursing homes which would automatically attract TDS in terms of section 194J of the Act and hence the assessee may be directed to pay tax and interest on such undisputed portion and for the remaining disputed portion let instalments be granted for making payments of tax till the disposal of the appeals by the Tribunal. Accordingly, the ld. DR vehemently objected to the grant of absolute stay in the matter. It was further argued that unless the assessee gives the details of paym....