M/S. HHP HOSPITAL PVT. LTD.,KOLKATA vs. I.T.O., TDS WARD - 1(2), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No.2215/KOL/2025 Assessment Year: 2013-14 M/S. HHP Hospital Pvt. Ltd................................................................................Appellant 2406, Garia Main Road, Kolkata West Bengal- 700084, [PAN No. AABCH2642B] Vs. I.T.O.TDS, Ward 1(2)/ Kolkata.........................…………..…………………....……….Respondent 10B, Middleton Road, Kolkata West Bengal- 700071 Appearances by: Gourav Mallo, A.R., appeared on behalf of the Appellant. Sandeep Kumar Mehta, Addl. CIT,,,appeared on behalf of the Respondent. Date of concluding the hearing : July 09, 2026 Date of pronouncing the order : August 17 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 21.03.2025 of the Office of the Commissioner of Income Tax, passed under Section 201 of the Assessment Year 2013-14 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). The brief facts of the case of the assessee are that a survey 2. u/s 133A(2A) was conducted in the office premises of the assessee. Notice/show cause were issued to the assessee for the financial year 2012-13, in compliance to the said notices assessee appeared and submitted details and documents as per the requisition. Ld. AO finds that the assessee incurred expenses as diagnostic expenses amounting to Rs. 58,16,752/- had been

ITA No.2215/Kol/2025 made to Dr. Lal Path Labs Ltd. The Ld. AO further find that TDS should have been deducted @ of 10% u/s 194J but the assessee deducted TDS only Rs. 109,933/- therefore, the net shortfall of TDS amounting to Rs. 4,67,690/- has been deducted. Aggrieved by the said order assessee preferred appeal before the CIT(A) wherein appeal of the assessee has been dismissed. Being aggrieved by and dissatisfied the assessee preferred appeal before us. 3. The Ld. AR challenges the very impugned order thereby submitting that the Ld. ITO is not justified in ascertaining the short deduction of Rs. 5,69,623/- on account of payment made under the head diagnostic expenses u/s 194J of the Act amounting to Rs. 5,696232/-that includes salary paid to the diagnostic staff and material purchased for own diagnostic lab, payment made to outside parties on which TDS has been deducted by assessee u/s 194C of the IT Act. The ld. AR further submits that in the present case TDS ought to be deducted u/s 194J @ 2% since it is a technical fee which the assessee did. The Ld. AR draw the attention on the Section 194C of the IT Act. Contrary to that Ld. DR supports the impugned order. 4. Upon hearing the submission of the counsel of the respective parties and on perusal of the record we find that assessee is running full-fledged Hospital having its own diagnostic centre. The Ld. AR has brought the audited balancesheet, total diagnostic expenses that include the breakup

ITA No.2215/Kol/2025 of diagnostic expenses. Explanation of 194J of the IT Act reveals thus- At the rate of 2% as I.T. in the case of a Payee: (a) engaged only in the business of Operation Call Cebtre: (b) fees for Technical services (not being a professional services) & (c) Royalty where such royalty is in the nature of consideration for sale distribution or exhibition of cinematographic films. At the rate of 10% as I.T. in the case of other payee. 4.1. Going over the paperbook filed by the assessee, we find that major diagnostic expenses are in respect to materials purchased, and salary to diagnostic staff. 5. Keeping in view the above documentary evidences we are in this view that in the present case T.D.S should have been deducted u/s 194C @ of 2% since it is a technical fee which the assessee already deducted. In the result, the appeal has been allowed.

Kolkata, the 17th August , 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

DC Dated:. 17. 08.2026.

ITA No.2215/Kol/2025

Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order Deputy Registrar, Kolkata Benches

ITA No.2215/Kol/2025