TaxTMI 
TaxTMI 
2023 (8) TMI 910
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.... neither appeared nor filed any application for adjournment, despite sending notice for hearing at the address given by the Assessee in Form- 36. Nor is there any other alternative address available with the Registry. Therefore, in the peculiar circumstances, we are constrained to decide these appeals as ex-parte qua Assessee. 4. For the sake of brevity, we will quote the facts, issues and impugned order involved in ITA no. 1027/Del/2022 for the assessment year 2014-15 as a lead case and our decision in this appeal shall apply mutatis mutandis to all other remaining appeals under consideration. 5. On merits, the Question involved in all these appeals for adjudication, is whether the ld. authorities below are justified in levying interest on late payment of TDS u/s. 201(1A) of the Act. 6. The brief facts relating to the issue under consideration are that the Assessee is a Third Party Administrator for insurance companies and made payments to various hospitals under cashless scheme on behalf of the insurance companies. The CPC-Bangalore vide intimation u/s. 154 read with section 200A of the Act charged interest on late payments of TDS u/s. 201(1A) of the Act. Being aggrie....
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.... by the petitioners to juristic or corporate entities that are "provide" "professional services"" Hence, it was settled on 30.09 2011 by Hon'ble Delhi High Court that provisions of section 194J of the Act are clearly applicable in TPA's case and TPA's are required to deduct TDS @ 10% on the payments made to hospitals on cashless basis on behalf of insurance companies. 6.4 The section 194J of the Act reads as under: "194]. (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, [or] [(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or] [(c) royalty, or (d) any sum referred to in clause (va) of section 28] shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income c....
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.... * The recipient has taken into account the above income in its return of income. * The recipient has paid the taxes due on the income declared in such return of income. * The recipient furnishes a certificate to this effect from an accountant in Form No. 26A In other words, in case of non deduction of tax at source or short deduction of tax, in case of a payee, if all the discussed conditions are satisfied, then the payer will not be treated as an assessee-in-default. However, no such documentary evidence has been produced by the appellant which establish that the appellant company is not to be treated as assessee in default in view of conditions laid down in sub-section (1) of section 201 of the Act. 6.8 Moreover, in such a case, even if the payer is not treated as an assessee-in-default, he will be liable to pay interest under section 201(1A) of the Act. As per sub-section (1A) to section 201 of the Act, if any person who is liable to deduct tax at source does not deduct it or after so deducting fails to pay, the whole or any part of the tax to the credit of the Government, then, such person, shall be liable to pay simple interest as given below: ....
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....ve discussion, the grounds taken by the appellant are hereby dismissed." 7. On perusal of the above findings of the ld. Commissioner, we observe that the ld. Commissioner while deciding the issue has taken into consideration the settled position of law on this aspect with reference to the provisions of sections 194J and Section 201(1A) of the Act in the light of CBDT Circular No.8/2009 dated 24.11.2009 and the decision of Hon'ble Delhi High Court, where the Assessee itself was one of the petitioners in Writ Petition(Civil) No. 121 of 2010, wherein it has been held that section 194J applies to the payments made by the petitioners to juristic or corporate entities that are providing professional services and the provisions of section 194J are clearly applicable in Third Party Administrator (TPA) cases. In fact, all the contentions of the Assessee raised before the ld. Commissioner have been properly considered by the first appellate authority in the impugned order and even otherwise we do not find any reason and/or material to contradict the decision made by the ld. Commissioner on the merits of the issue. Hence, the impugned order does not call for any interference on this count.....
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....y period and contentions of the Assessee, declined to condone the delay in filling of such appeals, by observing as under: " The orders u/s 154 r.w.s. 200A were passed by CPC-TDS, Bangalore, which gets served online automatically. The appeals have been filed much beyond the time limit of one month as provided u/s 249(2) of the Act. The appellant has cited the reasons leaving the company by CFO in year 2015 and pendency of huge demands in TDS-traces against the appellant company. After considering the submissions of the appellant, I am of the opinion that this delay appears to be on account of latches or gross negligence on the part of appellant company. Therefore, prima facie appeal also appears to be barred by limitation of time, allowed for filing the appeal." 8.3 We have given thoughtful consideration to the finding of the Ld. Commissioner in declining to condone the delay. In our considered view, once the ld. Commissioner declined to condone the delay in filling of the appeal being time barred by limitation, then there is no need to go into merits of the case, vice versa, once the Ld. Commissioner decided the appeals on merits then the inference can be drawn that de....