2017 (9) TMI 746

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....urt is not satisfied with the reasons given for delay in filing the appeal, the appeal has nevertheless been examined on merits. 4. The challenge in this appeal is to two orders of the Income Tax Appellate Tribunal (ITAT): (i) an order dated 31st May 2016 passed by the ITAT in M.A. No. 299/Del/2015 in ITA No. 2276/Del/2012 and (ii) an order dated 7th May 2015 passed by the ITAT in ITA No. 2276/Del/2012 for Assessment Year (AY) (2008-09). 5. The question before the ITAT in the impugned order was whether the Respondent-Assessee was liable to deduct tax at source under Section 194H/194C of the Income Tax Act, 1961 ('Act') on the discounts offered by its collection agents/franchises etc. and consequently, whether the disallowance under Se....

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....he assessee. The hospitals which act as Collection Centre have the same agreement, therefore, the discount given to them also falls within the purview of section 40(a)(ia) and has to be disallowed. Keeping in view of the Ld. C1T(A) has rightly held that total disallowance of Rs. 16,80,66,667/- made by the AO, a sum of Rs. 11,78,24,030/- (wrongly mentioned as Rs. 11,78,030/- in the ClT(A)'s order) is confirmed on this account, hence, we do not find any infirmity in the order of the Ld. CIT(A). Accordingly, we affirm the same and the Ground No. 1 raised by the Revenue stands rejected." 8. What the ITAT failed to note was that, in the Assessee's appeal before the ITAT for AY 2006-07, the ITAT had deleted the disallowance holding that th....