The Commissioner of Income-tax TDS, Bangalore / The Asst. Commissioner of Income-tax (TDS) Circle-18(1), Bangalore v. Medi Assist TPA Private Limited
[Citation -2020-LL-1013-48]

Citation 2020-LL-1013-48
Appellant Name The Commissioner of Income-tax TDS, Bangalore / The Asst. Commissioner of Income-tax (TDS) Circle-18(1), Bangalore
Respondent Name Medi Assist TPA Private Limited
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 13/10/2020
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags professional services • services rendered • filing of return • payment of tax • interest • tds


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 13TH DAY OF OCTOBER 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.246 OF 2014 BETWEEN: 1. COMMISSIONER OF INCOME-TAX TDS, NO.59, HMT BHAVAN 4TH FLOOR, BELLARY ROAD GANGANAGAR, BANGALORE. 2. ASST. COMMISSIONER OF INCOME-TAX (TDS) CIRCLE-18(1), NO.59, HMT BHAVAN 4TH FLOOR, BELLARY ROAD GANGANAGAR, BANGALORE. ... APPELLANTS (BY Mr. K V ARAVIND, ADV.,) AND: AND M/S. MEDI ASSIST TPA PRIVATE LIMITED SRI KRISHNA ARCADE NO.471, 9TH CROSS, 1ST MAIN ROAD SARAKKI INDL. LAYOUT 3RD PHASE, JP NAGAR BANGALORE 560 078. ... RESPONDENT (BY Mrs. VANI H, ADV., FOR Mr. MAHESH KUMAR L, ADV.,) --- 2 THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 30.01.2014 PASSED IN ITA NO.860/BANG/2013 FOR ASSESSMENT YEAR 2009-10, PRAYING THAT THIS HON BLE COURT MAY BE PLEASED TO: (I) FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. (II) ALLOW APPEAL AND SET ASIDE ORDER PASSED BY ITAT, BANGALORE IN ITA NO.860/BANG/2013 DATED 30.01.2014 CONFIRMING ORDER OF APPELLATE COMMISSIONER AND CONFIRM ORDER PASSED BY ASST. COMMISSIONER OF INCOME TAX (TDS), CIRCLE-18(1), BANGALORE. THIS ITA COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT This appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as Act for short) has been preferred by revenue. subject matter of appeal pertains to Assessment year 2009-10. appeal was admitted by bench of this Court vide order dated 24.11.2014 on following substantial questions of law: (i) Whether on facts and in circumstance of case and in law Tribunal was right in holding that provisions of Section 194J of Act has to be applied only to payments which assume nature of fee for professional services and not on entire composite payments, when bill contains charges for various services rendered 3 by hospital, as such payment or for services rendered as whole? (ii) Whether on facts and in circumstances of case and in law Tribunal was right in directing bifurcation of payment made by assessee with reference to services when provisions of section 194J of Act does not provide for bifurcation of composite payment? (iii) Whether on facts and in circumstance of case and in law Tribunal was right in holding that interest under Section 201(1A) of Act is to be computed upto due date of return of income to be filed by deductee and not upto date of filing of return of income contrary to proviso to Section 201(1A) of Act? (iv) Whether on facts and in circumstances of case and in law Tribunal was right in not taking into consideration Explanation (a) & (b) of Section 194J read with Explanation 2 to Section 9(i)(vii) of Act? (v) Whether on facts and in circumstances of case and in law Tribunal was justified in shifting burden on revenue to verify payment of tax by deductee on payments received from assessee in order to quantify amount of default committed by assessee? 4 2. We have heard learned counsel for parties at length. For reasons assigned by us by order passed today in I.T.A.No.323/2013, substantial questions of law are answered as answered in I.T.A.No.323/2013 and order of Tribunal to extent it directs bifurcation of payments made by assessee with reference to medical services only is hereby quashed. In result, appeal is partly allowed. Sd/- JUDGE Sd/- JUDGE ss Commissioner of Income-tax TDS, Bangalore / Asst. Commissioner of Income-tax (TDS) Circle-18(1), Bangalore v. Medi Assist TPA Private Limited
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