2018 (9) TMI 531

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.... 1961 (in short "the Act") dated 31. 03. 2011 for the Assessment Year 2008-09. 2. The assessee had raised an additional ground of appeal before us along with the original grounds of appeal. But we find that the effective issue involved in all these grounds is as to whether the assessee could be charged with the levy of interest u/s 201(1A) of the Act, in the facts and circumstances of the case. 3. The brief facts of this case are that the assessee is a company functioning as Third Party Administrator (TPA in short) for which it had obtained license from Insurance Regulatory Development Authority (IRDA in short). As a licensed TPA, it renders services in connection with health insurance business or health cover to various customers. It mak....

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....ayment can be direct payment, that is, payment made insurer directly to hospital or through float fund account. In case of latter, the TPA gets reimbursed upon the amount of claim processed. 3.1. The assessee company has agreements with M/s New India Assurance , M/s United India Insurance, M/s National Insurance and M/s Oriental Insurance. After studying the issue, it was felt that apparently the assessee is taking on the role of insurance companies in settling the claims of policy holder. From the point of view of TDS, it can be said that the assessee is the person responsible for making payments to hospitals under cashless system for the medical services rendered by them to the policy holders. The ld AO observed that the service rendere....

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....01(1A) of the Act dated 31. 3. 2011 for the Asst Year 2008-09. The action of the ld AO was upheld by the ld CITA. Aggrieved, the assessee is in appeal before us. 4. We have heard the rival submissions. At the outset, we find that the assessee had raised an additional ground of appeal before us stating that show cause notice has not been issued by the ld AO u/s 201(1) and 201(1A) of the Act before charging interest u/s 201(1A) of the Act on the assessee. In this regard, we find that the ld AO in his assessment order had categorically recorded that the assessee has been given several show cause notices in the course of assessment proceedings stating as to why it should not be treated as an 'assessee in default' u/s 201(1) of the Act and cons....