TaxTMI 
TaxTMI 
2022 (5) TMI 99
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....as lead case for disposal of the above appeals. 3. The grounds of appeal raised by assessee in A.Y. 2013-14 read as under: "1. Both the lower authorities have erred in law and on the facts of the case in confirming the nature of Service agreement entered by the appellant with various agencies for supply of labour and work as "professional in nature" U/S. 194J instead of 194C while framing the assessment u/s. 201(1)/201(1 A) of the Act and while passing the appellate order under the facts and circumstances of the case the action of both the authority are required to be quashed. 2. The Ld. CIT(A) has erred in law and on facts of the case has confirmed the interest charged U/s. 201 (1A) of IT Act which otherwise not warranted as appellant has rightly deducted and paid required TDS and there is no loss to the revenue. 3. Both the lower authorities have failed to appreciate the facts and nature of work and held as professional work. 4. Both the lower authorities have erred in law and on facts in passing the orders without properly appreciating the facts and that he further erred in grossly ignoring various submissions, explanations and information ....
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.... 18 Kruise Pathline Pvt. Ltd. 1075800 2% 21515 19 Heaithfore Technologies Ltd. ( Formerly known as Religare Technologies Ltd. 16772892 2% 335457 20 Indu Health Research Foundation Trust 18110895 2% 362218 21 Roman Development Consultants Pvt. Ltd. 1184139 2% 23682 Total 117219945 1713314 In this case, the assessee has entered into agreement with the abovementioned entities for the purpose of carrying out screening (i.e. DTT test, HPLC test etc.) of Sickle Cell Anemia in tribal district of Gujarat. It was seen that the function performed by the above entities fall under the purview of professional services/managerial and consultancy services as per section 194J of the Act and therefore liability of the deduction of tax arises @ 10% u/s. 194J instead of u/s. 194C. Section 194J contemplates as under: "[Fees for professional or technical services. 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of- (a) fees for professional services, or (b) fees for technical services[o....
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....arrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified ' by the Board for the purposes of section 44AA or of this section; (b) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (I) of section 9; [(ba) "royalty " shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (I) of section 9; (c) where any sum referred to in sub-section (I) is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly." Section 194C contemplates as under: "194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a sp....
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....owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum. (7) The person responsible for paying or crediting any sum to the person referred to in sub-section (6) shall furnish, to the prescribed income-tax authority or the person authorised by it, such particulars, in such form and within such time as may be prescribed. Explanation.-For the purposes of this section,- (i) "specified person" shall mean,- (a) the Central Government or any State Government; or (b) any local authority; or (c) any corporation established by or under a Central, State or Provincial Act; or (d) any company; or (e) any co-operative society; or (f) any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; or (g) any society registered under the Societies Registration Act, 1860 (21 of 1860....
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....nt other things conducting different medical tests i.e. DTT, HPLC etc. for Sickle Cell Anemia on the target population, tagging population as per the tests performed, making a database of such tests & their results and making all data available to the society. The screening test is conducted as per the guideline of the Government of Gujarat in this regard. The tests conducted by the personnel of the agencies in the field can be performed by medically qualified personnel and their report is submitted to society after approval of local Medical Officer. On the other hand, assessee's contention is that it has availed service of labour class and these labours don't have any technical qualification. Their job is to take out and collect blood sample and in agreement at page nos. 6 & 7, it is mentioned. 8. After going through the aforesaid service agreement, wherein it is clearly mentioned that: i. assignee has to make required number of teams comprising of one lab tech, two para medical worker and one assistant for entry. ii. Assignee has to make micro planning for screening with help of District Nodal officer and has to work accordingly iii. Before s....