TaxTMI 
TaxTMI 
2021 (8) TMI 1005
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.... 176, and 177 of 2021 ORAL JUDGMENT (PER : HONOURABLE MS. JUSTICE BELA M. TRIVEDI) 1. All the six appeals filed by the Commissioner of Income Tax (TDS), Ahmedabad under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "said Act") are arising out of the common order dated 26.11.2020 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench "A" (hereinafter referred to as the "Tribunal") in ITA Nos.1269/Ahd/2017, 1270/Ahd/2017, 1271/Ahd/2017, 1184/Ahd/2017, 1185/Ahd/2017, and 1197/Ahd/2017, and therefore, they were heard simultaneously and this common order is being passed. 2. The ITA Nos.1184/Ahd/2017, 1185/Ahd/2017, and 1197/Ahd/2017 were filed by the ACIT, TDS Circle, Ahmedabad, challenging the orders....
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.... was deducted under Section 194H of the said Act. The Assessing officer was of the view that the relationship between the assessee company and the doctors was that of the principal and agent, and therefore, the payments made under different heads for regional conference, scientific conference, sale promotion expenditure, etc., would fall within the definition of "commission". The Assessing officer, therefore, treated the assessee as an assessee in default under Section 201(1) for non-deduction of TDS under Section 194H of the said Act and raised the demand to the tune of Rs. 19.76 crore under Section 201(1) of the said Act. 4. Being aggrieved by the said order passed by the Assessing officer, the respondent assessee had preferred the app....
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....escribe the medicines as suggested by the assessee without considering various facts brought on record by the Assessing Officer ? 6. All the appeals pertain to the respondent assessee in respect of the A. Y. 2011-12- 201213 and 2013-14. 7. The learned Sr. Counsel Mr.M. R. Bhatt appearing for the appellant Department vehemently submitted that the Tribunal had committed an error in not upholding the findings recorded by the assessing officer and the CIT (Appeals) to the effect that the expenditure incurred by the respondent assessee on the doctors was required to be treated as payment of commission, and therefore, Section 194H of the said Act would apply. According to Mr.Bhatt, the Assessing officer after perusing the statements of the ....
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...., at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent : Explanation.-For the purposes of this section,- (i) "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities; (ii) the expression "professional services" means....
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....d not being "Professional Services". What is "professional services" is also explained, according to which the services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession etc. On the conjoint reading of the provisions contained in Section 194H and the Explanation thereof, there remains no shadow of doubt that any payment received or receivable by a person for rendering medical services is excluded from the purview of Section 194H of the Act. 10. In the instant case, as per the case of the appellant, the E-mails and other correspondences ensued between the sales executive and the General Manager, seized during the survey operations, suggested that the doctors had acted as the agents....