THE COMMISSIONER OF INCOME - TAX vs. M/S TTK HEALTHCARE TPA PRIVATE LIMITED

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.271 OF 2014 BETWEEN:

HMT BHAVAN, BANGALORE - 560 032. ... APPELLANTS (BY Mr. K.V. ARAVIND, ADV.,)

AND:

M/S. TTK HEALTHCARE TPA PRIVATE LIMITED 2 H.B. COMPLEX, 100FT BTM RING ROAD, BTM 1ST STAGE BTM LAYOUT, BANGALORE-560 048. ... RESPONDENT (BY Mr. T. SURYANARAYANA, ADV.) - - -

THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 19.12.2013 PASSED IN ITA NO.831/BANG/2013 FOR THE ASSESSMENT YEAR 2009-10, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO: (I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE.

(II) ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA NO.831/BANG/2013 DATED 19-12-2013 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THEORDER PASSED BY THE ASST. COMMISSIONER OF INCOME 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 05.06.2015 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?

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