TaxTMI 
TaxTMI 
2022 (2) TMI 1320
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....ince, identical issue is involved in all these five appeals by the Revenue, these appeals are taken up together for adjudication and are disposed off vide this common order. 2. Before we proceed to decide these appeals on merit it would be imperative to bring on record that the appeals of the Revenue in ITA No. 5389 & 5390/Mum/2013 for the AYs 2009-10 & 2010-11, respectively were first decided by the Tribunal vide order dated 31.03.2015. Hence, these two appeals are in second round before the Tribunal. In first round the Tribunal had allow the appeals for statistical purpose and had restored these appeals to the AO for deciding the issues afresh. Aggrieved by the said order of Tribunal, the assessee filed appeal before the Hon'ble Bombay ....
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....sssee for testing. The assessee raises periodical invoices on the TSPs against which the TSPs make payment to the assessee after deducting Tax at Source (TDS) under section 194J of the Act. The ld. Counsel pointed that as per the terms of agreement TSPs are not under obligation to send all the collected samples for testing to the assessee. The TSPs may get the samples tested through any other specialized testing laboratory. It is only when the patients insist that the tests are required to be done from the assessee, the TSPs send the sample to the assessee. 5. The ld. Counsel submitted that a survey action was carried out at the premises of the assessee on 14.10.2011. Pursuant to survey operation, proceedings under section 201 of the Act ....
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....of the Act on the payments made to the assessee. To buttress his submissions, the ld. Counsel placed reliance on the following decisions: (i) SRL. Ranbaxy Ltd. Vs. ACIT, 16 Taxmann.com 343 (Del.-Trib.). (ii) Ahmadabad Stamp Vendors Association Vs. Union of India, 257 ITR 202 (Guj.) 6. Per contra, Sh. Abhijeet Chaudhary representing the Department vehemently defended the assessment order and prayed for reversing the findings of CIT(A). The ld. DR submitted that the TSPs with whom assessee has arrangement to collect samples are the agents of the assessee, hence, there is a relation of principal-agent. On the payments made by the assessee to its agents, the assessee is liable to deduct tax under section 194H of the Act. The ld. DR r....
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....he samples to the assessee for testing. The assessee is remunerated for the testing services provided to the TSPs at an agreed rate. The assessee raises periodical invoices on the TSPs. The TSPs make payment to the assessee after deducting TDS under section 194J of the Act for rendering professional services. Thus, what emanates from the submissions made by ld. AR and the supporting documents is, it is the TSPs who are the payers and not the assessee. The assessee is a recipient of the amount for providing testing services to the TSPs. The assessee receives the payment on the basis of periodical invoices raised on TSPs, the TSPs make payment to the assessee after deducting TDS under section 194J of the Act. Thus, the findings of the AO ar....