Ita/246/2014 Of The Commissioner Of Income Tax v. M/S. Medi Assist Tpa Private Limited

IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 13 DAY OF OCTOBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD LT.A. NO.246 OF 2014 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX |TDS, NO.59, HMT BHAVAN.4TH FLOOR, BELLARY ROAD.TDS, NO.59, HMT BHAVAN.4TH FLOOR, BELLARY ROAD. GANGANAGAR, BANGALORE. 2 |THE ASST. COMMISSIONER OF INCOME-TAX (TDS)CIRCLE-18(1), NO.59, HMT BHAVAN.41H FLOOR,|ELLARY ROADGANGANAGAR, BANGALORE.|CIRCLE-18(1), NO.59, HMT BHAVAN.41H FLOOR,|ELLARY ROADGANGANAGAR, BANGALORE.| ... APPELLANTS (BY Mr. K V ARAVIND, ADV.,).AND:ANDM/S. MEDI ASSIST TPA PRIVATE LIMITED |SRI KRISHNA ARCADENO.4/71, 9TH CROSS, 1ST MAIN ROADSARAKKI INDL. LAYOUT3RD PHASE, JP NAGAR|BANGALORE 560 O78. ... RESPONDENT (BY Mrs. VANI H, ADV., FOR Mr. MAHESH KUMAR L, ADV.,) THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT,1961 ARISING OUT OF ORDER DATED 30.01.2014 PASSED IN [TA|NO.860/BANG/2013 FOR THE ASSESSMENT YEAR 2009-10,|PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO:(1) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW.STATED ABOVE. (II) ALLOW THE APPEAL AND SET ASIDE THE ORDERPASSED BY THE ITAT, BANGALORE IN ITA NO.860/BANG/2015|DATED 30.01.2014 CONFIRMING THE ORDER OF THE APPELLATE|COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST. COMMISSIONEROFINCOME|TAX(TDS),CIRCLE-18(1),BANGALORE. THIS ITA COMING ON FOR FINAL HEARING, THIS DAY,ALOK ARADHE J.,DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260A of the Income Tax|Act, 1961 (hereinafter referred to as the Act for short)has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 2009-10. The appeal was admitted by a bench of this Court vide order dated 24.11.2014 on the following substantialquestions of law:| (1)WhetherOf)factsand|In|circumstance of the case and In law theTribunal was right in holding that provisions ofSection 194J of the Act has to be applied onlyto the payments wnicn assume the nature offee for professional services and not on theentire composite payments, wnen tne. Dillcontains charges for various services rendered by the hospital, as such payment or forservices rendered as a whole? (11)WhetherOf)factsand|In|circumstances of the case and In law theTribunal was right in directing bifurcation ofpayment made by the assessee with referenceto the services when the provisions of section194J of tne Act does not provide’ forbifurcation of a composite payment? (iii) WhetherOP)factsand|In.circumstance of the case and in law theTribunal was right in holding that interestunder Section 201(1A) of the Act is to becomputea upto tne due date of return ofincome to be filed by the deductee and notupto the date of filing of return of income.contrary to proviso to Section 201(1A) of theAct? (iV) WhetherOf)factsand|In|circumstances of the case and In law theTribunalWasrigntIn|nottaking intoconsideration the Explanation (a) & (b) ofSection 194J read with Explanation 2 toSection 9(1)(vii) of the Act? (Vv)WhetherOf)factsand|In|circumstances of the case and In law theTribunal was Justified in shifting the burden onthe revenue to verify the payment of tax bythe aqeaquctee on the payments received frothe assessee in order to quantify the amount.of default committed by the assessee? 2 |We have heard the learned counsel for theparties at length. For the reasons assigned by us by anorderpassed|today|InI.T.A.No.323/2013, thesubstantial questions of law are answered as answeredin IL.T.A.No.323/2013 and the order of the Tribunal tothe extent it directsbifurcation of payments made bythe assessee with reference to the medical services only|is hereby quashed. In the result, the appeal is partly|allowed. SS| Sd/-JUDGE.Sd/-JUDGE.