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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 13TH DAY OF OCTOBER 2020
PRESENT
THE HON’BLE MR. JUSTICE ALOK ARADHE
AND
THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD
I.T.A. NO.324 OF 2013 BETWEEN:
THE COMMISSIONER OF INCOME-TAX TDS, NO.59 HMT BHAVAN 4TH FLOOR BELLARY ROAD GANGANAGAR, BANGALORE.
THE DEPUTY COMMISSIONER OF INCOME-TAX (TDS) TDS CIRCLE 18(2), NO.59, HMT BHAVAN
4TH FLOOR BELLARY ROAD GANGANAGAR, BANGALORE 560 032. ... APPELLANTS (BY Mr. K V ARAVIND, ADV.,)
AND:
M/S. TTK HEALTHCARE TPA PVT. LTD., NO 2, H B COMPLEX 100 FEET BTM RING ROAD BTM I STAGE, BTM LAYOUT BANGALORE 560068. ... RESPONDENT (BY Mr. T. SURYANARAYANA, ADV.) - - -
THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 28.02.2013 PASSED IN ITA NO.424/BANG/2011 FOR THE ASSESSMENT YEAR 2004-05, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO:
(I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. (II) ALLOW THE APPEAL AND SET ASIDE THE ORDER OF THE ITAT, BANGALORE IN ITA NO.424/BANG/2011 DATED 28-02- 2013 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX (TDS), TDS CIRCLE- 18(2), 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 2004-05. The appeal was admitted by a bench of this Court vide order dated 16.07.2014 on the following substantial questions of law: (i) Whether the Tribunal was correct in holding that provisions of Section 194J of the Act has to be applied only to the payments which assume the nature of fee for professional services and not on the entire composite payments, when the bill contains charges for various
services rendered by the hospital, as such payment or for services rendered as a whole?
(ii) Whether the Tribunal was correct in directing bifurcation of payment made by the assessee with reference to the services when the provisions of section 194J of the Act does not provide for bifurcation of a composite payment?
(iii) Whether the Tribunal was correct in holding that interest under Section 201(1A) of the Act is to be computed upto the due date of return of income to be filed by the deductee and not upto the date of filing of return of income contrary to proviso to Section 201(1A) of the Act?
(iv) Whether the Tribunal was correct in not taking into consideration the Explanation (a) & (b) of Section 194J read with Explanation 2 to Section 9(i)(vii) of the Act?
We have heard the learned counsel for the parties at length. For the reasons assigned by us by an order passed today in I.T.A.No.323/2013, the substantial questions of law are answered as answered in I.T.A.No.323/2013 and the order of the Tribunal to the extent it directs bifurcation of payments made by the assessee with reference to the medical services only is hereby quashed. In the result, the appeal is partly allowed.
Sd/- JUDGE
Sd/- JUDGE ss