Gujarat Sickle Anemia Control Society, Gandhinagar V. The Deputy Commissioner of Income Tax, Ahmedabad

ITA 1073/AHD/2017

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 4489 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 02-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: TDS
• Section: 194C; 194J

Judgement Text

, ‘D’ । IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD (Convened through Virtual Court) BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR & SHRI WASEEM AHMED, ACCOUNTANT MEMEBR आयकर अपील सं./I.T.A. Nos. 1072 to 1074/Ahd/2017 ( Assess ment Ye ars : 2 013-14 to 2015-16) Gu ja rat S ic kl e Ce l l An e mia C on tr ol S oci ety (Un de r Th e Co nt ro l of Hea lt h, M ed ic al Se rvi ce s An d Me dic al E du ca tio n) 2 n d Fl oo r, B lo ck N o .5/ 2, Dr. J iv ra j Me hta B hav an , Ga nd hin ag ar , Gu jar at - 38 20 10 / V s . Dy . C o mmi s si on er of In co me T ax , T D S Cir cl e 2 n d Fl oo r, A mr ut J a ya n ti Bh ava n, N av ji va n Tru st Bu ild in g, A h med ab ad यी ल सं./ ीआ आर सं./P A N / G IR N o . : A A BT G 8 3 8 0 N (अपील Appellant) . . ( य / Respondent) अपील र स /Appellant by : Sh ri Ru pe sh R . Sh a h, A. R. य क र स / Respondent by : Shri Purushottam Kumar, Sr.D.R. स क र D a t e o f H e a r i n g 05/04/2022 !"# क र /D a t e o f P r o n o u n c e m e n t 18/04/2022 ORDER PER MAHAVIR PRASAD, JM: The captioned three appeals have been filed at the instance of the assessee against the orders of the Co mmi ssioner of Inco me Tax (App eals)-8, Ah medabad (‘CIT( A) ’ in short) vide Appeal Nos. CIT( A)-8/423/15-16, CIT(A) -8/424/14-15 & ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 2 - CIT( A)-8/425/15-16; respectively, all dated 22.02.2017 arising in the assessmen t order dated all 08.01.2016 passed by the Assessing Officer (AO) under s. 201(1)/201(1A) of the Inco me Tax Act, 1961 (the Act) concerning AYs. 2013-14 to 2015-16. 2. Since, in all appeals facts & circumstances & issues are co mmon, therefor e, for the sake of brevity, we would like to dispose of these matters b y wa y of a co mmon order. ITA No. 1072/Ahd/2017 for A.Y. 2013-14 is taken as lead case for disposal of the above appeals. 3. The grounds of appeal raised by assessee in A.Y. 2013-14 read as under: “ 1 . B o t h t h e l o w e r a u t h o r i t i e s h a v e e r r e d i n l a w a nd o n t h e f a c t s o f t h e c a s e i n c o n f i r m i n g t h e n a t u r e o f S e r v i c e a g r e e m e n t e n t e r e d b y t h e a p p e l l a n t w i t h v a r i o u s a g e n c i e s f o r s u p p l y o f l a b o ur a n d w o r k a s " p r o f e s s i o n a l i n n a t u r e " U / S . 1 9 4 J i n s t e a d o f 1 9 4 C wh i l e f r a m i n g t h e a s s e s s m e n t u / s 2 0 1 ( 1 ) / 2 0 1 ( 1 A ) o f t h e A c t a n d w h i le p a s s i n g t h e a p p e l l a t e o r d e r u n d e r t h e f a c t s a n d c i r c u m s t a n c e s of t h e c a s e t h e a c t i o n o f b o t h t h e a u t h o r i t y a r e r e q u i r e d t o b e q u as h e d . 2 . T h e L d C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s o f t h e c a s e h a s c o n f i r m e d t h e i n t e r e s t c h a r g e d U / s . 2 0 1 ( 1 A ) o f I T A c t w h i c h ot h e r w i s e n o t w a r r a n t e d a s a p p e l l a n t h a s r i g h t l y d e d u c t e d a n d p a id r e q u i r e d T D S a n d t h e r e i s n o l o s s t o t h e r e v e n u e . 3 . B o t h t h e l o w e r a u t h o r i t i e s h a v e f a i l e d t o a p p re c i a t e t h e f a c t s a n d n a t u r e o f w o r k a n d h e l d a s p r o f e s s i o n a l w o r k . 4 . B o t h t h e l o w e r a u t h o r i t i e s h a v e e r r e d i n l a w an d o n f a c t s i n p a s s i n g t h e o r d e r s w i t h o u t p r o p e r l y a p p r e c i a t i n g t h e f a c t s a n d t h a t h e f u r t h e r e r r e d i n g r o s s l y i g n o r i n g v a r i o u s s u b m i s s i o n s , e x p l a n a t i on s a n d i n f o r m a t i o n a g r e e m e n t w i t h v a r i o u s a g e n c i e s s u b m i t t e d b y t h e a pp e l l a n t f r o m t i m e t o t i m e w h i c h o u g h t t o h a v e b e e n c o n s i d e r e d b e f o r e p a s s i n g t h e i m p u g n e d o r d e r . T h i s a c t i o n o f b o t h t h e a u t h o r i t i e s i s i n c l e a r b r e a c h o f l a w a n d P r i n c i p l e s o f N a t u r a l J u s t i c e a n d t h e r e fo r e d e s e r v e s t o b e q u a s h e d . ” ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 3 - 4. Facts of the case are that the assessee is a society under the control of Co mmissioner of Health, Gandhinagar and various agencies were appointed for carr ying out work of screening and subsequently sub miss ion of report to concerned authority. TDS on these payment s was deducted @2% or at lower rate of 1% UNDER s.194C of the Act. In this regard, details were gathered during the course of survey as well as after the survey by issuing notices on various dates. The details of parties to whom pa yments we re made under the project in different years sta rting from F .Y. 2 012-13 to F.Y. 2014-15 and TDS deducted thereon is as per the t able below: S r . N o . N a m e o f A g e n c y A m o u n t P a i d R a t e a t w h i c h I D S D e d u c t e d A m t . o f T D S R s . F . Y . 2 0 1 2 - 1 3 1 S C H A M K A T e c h n o l o g y P v t . L t d . 2 8 9 7 3 2 5 3 2 % 5 9 1 2 9 0 2 I n d i a n R e d C r o s s S o c i e t y 7 9 6 6 7 0 2 % 1 6 2 5 8 3 V a l s a d R a k t d a n K e n d r a 7 3 3 3 4 5 0 2 % 1 4 9 6 6 3 4 K r u i s e P a t h l i n e P v t . L t d . 3 7 8 3 1 6 6 2 % 7 7 2 0 7 5 H e a i t h f o r e T e c h n o l o g i e s L t d . ( F o r me r l y k n o w n a s R e l i g a r e T e c h n o l o g i e s L t d . ) 1 4 6 5 8 6 0 1 2 % 2 9 9 1 5 6 6 I n d u H e a l t h R e s e a r c h F o u n d a t i o n T r u s t 6 7 5 3 7 8 9 2 % 1 3 7 8 3 2 7 R o ma n D e v e l o p me n t C o n s u l t a n t s P v t . L t d . 2 5 7 5 9 1 3 2 % 5 2 5 7 0 T o t a l 6 4 8 7 4 8 4 2 1 3 2 3 9 7 6 F . Y . 2 0 1 3 - 1 4 8 S C H A M K A T e k n o l o g y P v t . L t d . 5 6 3 2 8 8 2 5 2 % , 1 % 6 5 9 9 0 2 9 I n d i a n R e d C r o s s S o c i e t y 1 9 6 6 1 1 0 2 % 3 9 3 3 2 1 0 V a l s a d R a k t d a n K e n d r a 1 5 6 6 3 0 2 0 2 % 3 1 3 2 6 3 1 1 K r u i s e P a t h l i n e P v t . L t d . 4 2 9 6 6 8 9 2 % 8 5 9 3 3 1 2 H e a i t h f o r e T e c h n o l o g i e s L t d . ( F o r me r l y k n o w n a s R e l i g a r e T e c h n o l o g i e s L t d . ) 2 8 1 4 3 6 7 5 2 % 5 6 2 8 8 6 1 3 I n d u H e a l t h R e s e a r c h F o u n d a t i o n T r u s t 9 8 5 8 9 4 8 2 % 1 9 7 1 7 8 1 4 R o ma n D e v e l o p me n t C o n s u l t a n t s P v t . L t d . 2 8 2 0 0 4 8 2 % 5 6 4 0 1 T o t a l 1 1 9 0 7 7 3 1 5 1 9 1 4 8 9 5 ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 4 - F . Y . 2 0 1 4 - 1 5 1 5 S C H A M K A T e c h n o l o g i e s P v t . L t d . 6 5 1 5 4 4 7 1 2 % , 1 % 6 7 2 0 0 6 1 6 I n d i a n R e d C r o s s S o c i e t y 2 9 4 8 3 5 2 2 % 5 8 9 6 7 1 7 V a l s a d R a k t d a n K e n d r a 1 1 9 7 3 3 9 6 2 % 2 3 9 4 6 9 1 8 K r u i s e P a t h l i n e P v t . L t d . 1 0 7 5 8 0 0 2 % 2 1 5 1 5 1 9 H e a i t h f o r e T e c h n o l o g i e s L t d . ( F o r me r l y k n o w n a s R e l i g a r e T e c h n o l o g i e s L t d . 1 6 7 7 2 8 9 2 2 % 3 3 5 4 5 7 2 0 I n d u H e a l t h R e s e a r c h F o u n d a t i o n T r u s t 1 8 1 1 0 8 9 5 2 % 3 6 2 2 1 8 2 1 R o ma n D e v e l o p me n t C o n s u l t a n t s P v t . L t d . 1 1 8 4 1 3 9 2 % 2 3 6 8 2 T o t a l 1 1 7 2 1 9 9 4 5 1 7 1 3 3 1 4 In this case, the assessee has entered into agree ment with the abovementioned entities for the purpose of carr ying out screening (i.e. DTT test, HP LC test etc.) of Sickle Cell Ane mia in tribal district of Gu jarat. It was seen that the function perfor med b y the above entities fall under the purview of professional services/ managerial and consultancy services as per section 194J of the Act and therefore liability of the deduction of tax arises @ 10% u/s 194J instead of u/s 194C. Section 194J conte mplates as under: " [F e e s f o r p r o f e s s i o n a l o r t e c h n i c a l s e r v i c e s. 1 9 4 J. ( 1 ) A n y p e r s o n , n o t b e i n g a n i n d i v i d u a l o r a H i nd u u n d i v i d e d f a m i l y , w h o i s r e s p o n s i b l e f o r p a y i n g t o a r e s i d e n t a n y s u m b y w a y o f — ( a ) f e e s f o r p r o f e s s i o n a l s e r v i c e s , o r ( b ) f e e s f o r t e c h n i c a l s e r v i c e s [ o r] [ ( b a ) a n y r e m u n e r a t i o n o r f e e s o r c o m m i s s i o n b y w h at e v e r n a m e c a l l e d , o t h e r t h a n t h o s e o n w h i c h t a x i s d e d u c t i b l e u n d e r s e c t i o n 1 9 2 , t o a d i r e c t o r o f a c o m p a n y , o r ] [ ( c ) r o y a l t y , o r ( d ) a n y s u m r e f e r r e d t o i n c l a u s e ( v a ) o f s e c t i o n 28 , ] s h a l l , a t t h e t i m e o f c r e d i t o f s u c h s u m t o t h e a c co u n t o f t h e p a y e e o r a t t h e t i m e o f p a y m e n t t h e r e o f i n c a s h o r b y i s s u e o f a c h e q u e o r d r a f t o r b y a n y o t h e r m o d e , w h i c h e v e r i s e a r l i e r , d e d u c t a n a m o u n t e q u a l t o 4 8 [ t e n] p e r c e n t o f s u c h s u m a s i n c o m e - t a x o n i n c o m e c o m p r i s e d t h e r e i n : P r o v i d e d t h a t n o d e d u c t i o n s h a l l b e m a d e u n d e r t h i s s e c t i o n — ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 5 - ( A ) f r o m a n y s u m s a s a f o r e s a i d c r e d i t e d o r p a i d b e fo r e t h e 1 s t d a y o f J u l y , 1 9 9 5 ; o r ( B ) w h e r e t h e a m o u n t o f s u c h s u m o r , a s t h e c a s e m ay b e , t h e a g g r e g a t e o f t h e a m o u n t s o f s u c h s u m s c r e d i t e d o r pa i d o r l i k e l y t o b e c r e d i t e d o r p a i d d u r i n g t h e f i n a n c i a l y e a r b y t h e a f o r e s a i d p e r s o n t o t h e a c c o u n t o f , o r t o , t h e p a y > e e , d o e s n o t e x c e e d — ( i ) [ t h i r t y t h o u s a n d r u p e e s ] , i n t h e c a s e o f f e e s fo r p r o f e s s i o n a l s e r v i c e s r e f e r r e d t o i n c l a u s e ( a ) , o r ( i i ) [ t h i r t y t h o u s a n d r u p e e s ] , i n t h e c a s e o f f e e s f o r t e c h n i c a l s e r v i c e s r e f e r r e d t o i n 3 [ c l a u s e ( b ) , o r ] ( i i i ) [ t h i r t y t h o u s a n d r u p e e s ] , i n t h e c a s e o f r o y al t y r e f e r r e d t o i n c l a u s e ( c ) , o r ( i v ) [ t h i r t y t h o u s a n d r u p e e s ] , i n t h e c a s e o f s u m re f e r r e d t o i n c l a u s e ( d ) : ] [P r o v i d e d f u r t h e r t h a t a n i n d i v i d u a l o r a H i n d u u n d i v i d e d f a m i l y , w h o s e t o t a l s a l e s , g r o s s r e c e i p t s o r t u r n o ve r f r o m t h e b u s i n e s s o r p r o f e s s i o n c a r r i e d o n b y h i m e x c e e d t h e m o n e t a r y l i m i t s s p e c i f i e d u n d e r c l a u s e ( a ) o r c l a u s e ( b ) o f s e c t i o n 4 4 A B d u r in g t h e f i n a n c i a l y e a r i m m e d i a t e l y p r e c e d i n g t h e f i n a n c i a l y e a r i n w h i c h su c h s u m b y w a y o f f e e s f o r p r o f e s s i o n a l s e r v i c e s o r t e c h n i c a l s e r v i c es i s c r e d i t e d o r p a i d , s h a l l b e l i a b l e t o d e d u c t i n c o m e - t a x u n d e r t h i s s e ct i o n : ] [P r o v i d e d a l s o t h a t n o i n d i v i d u a l o r a H i n d u u n d i v i d e d f a m i l y r e f e r r e d t o i n t h e s e c o n d p r o v i s o s h a l l b e l i a b l e to d e d u c t i n c o m e - t a x o n t h e s u m b y w a y o f f e e s f o r p r o f e s s i o n a l s e r v i c e s i n c a s e s u c h . s u m i s c r e d i t e d o r p a i d e x c l u s i v e l y f o r p e r s o n a l p u r p o s e s o f s u c h i n d i v i d u a l o r a n y m e m b e r o f H i n d u u n d i v i d e d f a m i l y . ] ( 2 ) [ * * * ] ( 3 ) [ * * * ] E x p l a n a t i o n . — F o r t h e p u r p o s e s o f t h i s s e c t i o n , — ( a ) "p r o f e s s i o n a l s e r v i c e s" m e a n s s e r v i c e s r e n d e r e d b y a p e r s o n i n t h e c o u r s e o f c a r r y i n g o n l e g a l , m e d i c a l , e n g i n e e r i n g or a r c h i t e c t u r a l p r o f e s s i o n o r t h e p r o f e s s i o n o f a c c o u n t a n c y o r t e c hn i c a l c o n s u l t a n c y o r i n t e r i o r d e c o r a t i o n o r a d v e r t i s i n g o r s u c h o t h e r p ro f e s s i o n a s i s n o t i f i e d ' b y t h e B o a r d f o r t h e p u r p o s e s o f s e c t i o n 4 4 A A o r o f t h i s s e c t i o n ; ( b ) "f e e s f o r t e c h n i c a l s e r v i c e s" s h a l l h a v e t h e s a m e m e a n i n g a s i n E x p l a n a t i o n 2 t o c l a u s e ( v i i ) o f s u b - s e c t i o n ( I ) o f s e c t i o n 9 ; [ ( b a ) " r o y a l t y " s h a l l h a v e t h e s a m e m e a n i n g a s i n E x p l a n a t i o n 2 t o c l a u s e ( v i ) o f s u b - s e c t i o n ( I ) o f s e c t i o n 9 ; ( c ) w h e r e a n y s u m r e f e r r e d t o i n s u b - s e c t i o n ( I ) i s c r e d i t e d t o a n y a c c o u n t , w h e t h e r c a l l e d " s u s p e n s e a c c o u n t " o r b y a ny o t h e r n a m e , i n t h e b o o k s o f a c c o u n t o f t h e p e r s o n l i a b l e t o p a y s uc h s u m , s u c h c r e d i t i n g s h a l l b e d e e m e d t o b e c r e d i t o f s u c h s u m t o t h e a c c o u n t o f t h e p a y e e a n d t h e p r o v i s i o n s o f t h i s s e c t i o n s h a l l a p p ly a c c o r d i n g l y . ” ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 6 - Section 194C conte mplates as under: “ 1 9 4 C . ( 1 ) A n y p e r s o n r e s p o n s i b l e f o r p a y i n g a n y s um t o a n y r e s i d e n t ( h e r e a f t e r i n t h i s s e c t i o n r e f e r r e d t o a s t h e c o n t r a c t o r ) f o r c a r r y i n g o u t a n y w o r k ( i n c l u d i n g s u p p l y o f l a b ou r f o r c a r r y i n g o u t a n y w o r k ) i n p u r s u a n c e o f a c o n t r a c t b e t w e e n t he c o n t r a c t o r a n d a s p e c i f i e d p e r s o n s h a l l , a t t h e t i m e o f c r e d i t o f s u c h s u m t o t h e a c c o u n t o f t h e c o n t r a c t o r o r a t t h e t i m e o f p a ym e n t t h e r e o f i n c a s h o r b y i s s u e o f a c h e q u e o r d r a f t o r b y a n y o t he r m o d e , w h i c h e v e r i s e a r l i e r , d e d u c t a n a m o u n t e q u a l t o — ( i ) o n e p e r c e n t w h e r e t h e p a y m e n t i s b e i n g m a d e o r c r ed i t i s b e i n g g i v e n t o a n i n d i v i d u a l o r a H i n d u u n d i v i d e d fa m i l y ; ( i i ) ( i i ) t w o p e r c e n t w h e r e t h e p a y m e n t i s b e i n g m a d e o r c r e d i t i s b e i n g g i v e n t o a p e r s o n o t h e r t h a n a n i n d i v i d u a l o r a H i n d u u n d i v i d e d f a m i l y , o f s u c h s u m a s i n c o m e - t a x o n i n c o m e c o m p r i s e d t h e r ei n . ( 2 ) Wh e r e a n y s u m r e f e r r e d t o i n s u b - s e c t i o n ( 1 ) i s c r e d i t e d t o a n y a c c o u n t , w h e t h e r c a l l e d " S u s p e n s e a c c o u n t " o r by a n y o t h e r n a m e , i n t h e b o o k s o f a c c o u n t o f t h e p e r s o n l i a b l e t o p a y s u c h i n c o m e , s u c h c r e d i t i n g s h a l l b e d e e m e d t o b e c r e d i t o f s u c h i n c o m e t o t h e a c c o u n t o f t h e p a y e e a n d t h e p r o v i s i on s o f t h i s s e c t i o n s h a l l a p p l y a c c o r d i n g l y . ( 3 ) Wh e r e a n y s u m i s p a i d o r c r e d i t e d f o r c a r r y i n g o u t a n y w o r k m e n t i o n e d i n s u b - c l a u s e ( e ) o f c l a u s e ( i v ) o f t h e Ex p l a n a t i o n , t a x s h a l l b e d e d u c t e d a t s o u r c e — (i ) o n t h e i n v o i c e v a l u e e x c l u d i n g t h e v a l u e o f ma t e r i a l , i f s u c h v a l u e i s m e n t i o n e d s e p a r a t e l y i n t h e i n v o i c e ; o r ( i i ) o n t h e w h o l e o f t h e i n v o i c e v a l u e , i f t h e v a lu e o f m a t e r i a l i s n o t m e n t i o n e d s e p a r a t e l y i n t h e i n v o i c e. ( 4 ) N o i n d i v i d u a l o r H i n d u u n d i v i d e d f a m i l y s h a l l be l i a b l e t o d e d u c t i n c o m e - t a x o n t h e s u m c r e d i t e d o r p a i d t o t he a c c o u n t o f t h e c o n t r a c t o r w h e r e s u c h s u m i s c r e d i t e d o r p a i d ex c l u s i v e l y f o r p e r s o n a l p u r p o s e s o f s u c h i n d i v i d u a l o r a n y m e m b e r o f H i n d u u n d i v i d e d f a m i l y . ( 5 ) N o d e d u c t i o n s h a l l b e m a d e f r o m t h e a m o u n t o f an y s u m c r e d i t e d o r p a i d o r l i k e l y t o b e c r e d i t e d o r p a i d to t h e a c c o u n t o f , o r t o , t h e c o n t r a c t o r , i f s u c h s u m d o e s n o t e x c e e d t h i r t y t h o u s a n d r u p e e s : P r o v i d e d t h a t w h e r e t h e a g g r e g a t e o f t h e a m o u n t s o f s u c h s um s c r e d i t e d o r p a i d o r l i k e l y t o b e c r e d i t e d o r p a i d du r i n g t h e f i n a n c i a l y e a r e x c e e d s o n e l a k h r u p e e s , t h e p e r s o n r e s p o n s i b l e f o r p a y i n g s u c h s u m s r e f e r r e d t o i n s u b - s e c t i o n (1 ) s h al l b e l i a b l e t o d e d u c t i n c o m e - t a x u n d e r t h i s s e c t i o n . ( 6 ) N o d e d u c t i o n s h a l l b e m a d e f r o m a n y s u m c r e d i t ed o r p a i d o r l i k e l y t o b e c r e d i t e d o r p a i d d u r i n g t h e p r e v i o u s ye a r t o t h e a c c o u n t o f a c o n t r a c t o r d u r i n g t h e c o u r s e o f b u s i n es s o f p l y i n g , h i r i n g o r l e a s i n g g o o d s c a r r i a g e s , w h e r e s u c h c o n t ra c t o r o w n s t e n o r l e s s g o o d s c a r r i a g e s a t a n y t i m e d u r i n g t h e p r e vi o u s y e a r a n d ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 7 - f u r n i s h e s a d e c l a r a t i o n t o t h a t e f f e c t a l o n g w i t h hi s P e r m a n e n t A c c o u n t N u m b e r , t o t h e p e r s o n p a y i n g o r c r e d i t i n g su c h s u m . ( 7 ) T h e p e r s o n r e s p o n s i b l e f o r p a y i n g o r c r e d i t i n g a n y s u m t o t h e p e r s o n r e f e r r e d t o i n s u b - s e c t i o n (6 ) s h a l l f u r n i s h, t o t h e p r e s c r i b e d i n c o m e - t a x a u t h o r i t y o r t h e p e r s o n a u t h or i s e d b y i t , s u c h p a r t i c u l a r s , i n s u c h f o r m a n d w i t h i n s u c h t i m e a s m a y b e p r e s c r i b e d . E x p l a n a t i o n . — F o r t h e p u r p o s e s o f t h i s s e c t i o n , — ( i ) " s p e c i f i e d p e r s o n " s h a l l m e a n , — (a ) t h e C e n t r a l G o v e r n m e n t o r a n y S t a t e G o v e r n m e nt ; o r (b ) a n y l o c a l a u t h o r i t y ; o r ( c ) a n y c o r p o r a t i o n e s t a b l i s h e d b y o r u n d e r a C e n tr a l , S t a t e o r P r o v i n c i a l A c t ; o r (d ) a n y c o m p a n y ; o r ( e ) a n y c o - o p e r a t i v e s o c i e t y ; o r (f ) a n y a u t h o r i t y , c o n s t i t u t e d i n I n d i a b y o r u n d er a n y l a w , e n g a g e d e i t h e r f o r t h e p u r p o s e o f d e a l i n g w i t h a n d s a t i s f y i n g t h e n e e d f o r h o u s i n g a c c o m m o d a t i o n or f o r t h e p u r p o s e o f p l a n n i n g , d e v e l o p m e n t o r i m p r o v e m e n t o f c i t i e s , t o w n s a n d v i l l a g e s , o r f o r bo t h ; o r ( g ) a n y s o c i e t y r e g i s t e r e d u n d e r t h e S o c i e t i e s R e g is t r a t i o n A c t , 1 8 6 0 ( 2 1 o f 1 8 6 0 ) o r u n d e r a n y l a w c o r r e s p o n d i n g t o t h a t A c t i n f o r c e i n a n y p a r t o f I n d i a ; o r (h ) a n y t r u s t ; o r (i ) a n y u n i v e r s i t y e s t a b l i s h e d o r i n c o r p o r a t e d b y o r u n d e r a C e n t r a l , S t a t e o r P r o v i n c i a l A c t a n d a n i n s t i t u t io n d e c l a r e d t o b e a u n i v e r s i t y u n d e r s e c t i o n 3 o f t h e U n i v e r s i t y G r a n t s C o m m i s s i o n A c t , 1 9 5 6 (3 o f 1 9 5 6 ) ; o r ( j ) a n y G o v e r n m e n t o f a f o r e i g n S t a t e o r a f o r e i g n e n t e r p r i s e o r a n y a s s o c i a t i o n o r b o d y e s t a b l i s h e d o u t s i d e I n d i a ; o r ( k ) a n y f i r m ; o r (l ) a n y p e r s o n , b e i n g a n i n d i v i d u a l o r a H i n d u u n di v i d e d f a m i l y o r a n a s s o c i a t i o n o f p e r s o n s o r a b o d y o f i n d i v i d u a l s , i f s u c h p e r s o n , — ( A ) d o e s n o t f a l l u n d e r a n y o f t h e p r e c e d i n g s u b - c l a u s e s ; a n d ( B ) i s l i a b l e t o a u d i t o f a c c o u n t s u n d e r c l a u s e ( a ) o r c l a u s e ( b ) o f s e c t i o n 4 4 A B d u r i n g t h e f i n a n c i a l y e a r i m m e d i a t e l y p r e c e d i n g t h e f i n a n c i a l y e a r i n w h i c h s u c h s u m i s c r e d i t e d o r p a i d t o t h e a c c o u n t o f t h e c o n t r a c t o r ; ( i i ) " g o o d s c a r r i a g e " s h a l l h a v e t h e m e a n i n g a s s i gn e d t o i t i n t h e E x p l a n a t i o n t o s u b - s e c t i o n ( 7 ) o f s e c t i o n 4 4 A E ; ( i i i ) " c o n t r a c t " s h a l l i n c l u d e s u b - c o n t r a c t ; ( i v ) " w o r k " s h a l l i n c l u d e — ( a ) a d v e r t i s i n g ; ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 8 - ( b ) b r o a d c a s t i n g a n d t e l e c a s t i n g i n c l u d i n g p r o d u c t i o n o f p r o g r a m m e s f o r s u c h b r o a d c a s t i n g o r t e l e c a s t i n g ; ( c ) c a r r i a g e o f g o o d s o r p a s s e n g e r s b y a n y m o d e o f t r a n s p o r t o t h e r t h a n b y r a i l w a y s ; ( d ) c a t e r i n g ; ( e ) m a n u f a c t u r i n g o r s u p p l y i n g a p r o d u c t a c c o r d i n g t o t h e r e q u i r e m e n t o r s p e c i f i c a t i o n o f a c u s t o m e r b y u s i n g m a t e r i a l p u r c h a s e d f r o m s u c h c u s t o m e r , b u t d o e s n o t i n c l u d e m a n u f a c t u r i n g o r s u p p l y i n g a p r o d u c t a c c o r d i n g t o t h e r e q u i r e m e n t o r s p e c i f i c a t io n o f a c u s t o m e r b y u s i n g m a t e r i a l p u r c h a s e d f r o m a p e r s o n , o t h e r t h a n s u c h c u s t o m e r .] ” The learned AO was not agreed with the contention of the assessee and made an addition of Rs.75,38,722/- under s.201(1)/201(1A) of the Act. 5. Against the said order, assessee preferred first statutory appeal before the learned CIT(A) who partly allowed the appeal of the assessee. 6. We have heard both the parties and perused the mate rials available on record. 7. Now issue before us is whether assessee is liable to deduct tax under s.194J of the Act or Section 194C of the Act. The AO concluded on the basis of scope of agree ment that the services carried out by t he agencies are a professional service and include amount other things conducting different medical tests i.e. DTT, HP LC etc. for Sickle Cell Ane mia on the target population, tagging population as per the tests perfor med, making a database of such tests & their results and making all data available to the society. The screening test is conducted as ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 9 - per the guideline of the Governmen t of Gujarat in this regard. The tests conducted by the personnel of the agencies in the field can be performed by medicall y qualified personnel and their report is submitte d to society after approval of local Medical Officer . On the other hand, assessee’s contention is that it has availed service of labour class and these labours don’t have any technical qualification. Their job is to take out and collect blood sample and in agree ment at page nos. 6 & 7, it is mentioned. 8. After going through the aforesaid service agreement, wherein it is clear ly mentioned that: i. assignee has to make required numb er of tea ms compr ising of one lab tech, two para medical worker and one a ssistant for entry. ii. Assignee has to make micro planning for screening with help of District Nodal officer and has to work accordi ngly iii. Before starting the work in the district, Assignee has to do the interdepartme ntal meeting at district level in the chair of respective CDHO to inform about the detail of screening progra m. iv. Assignee has to no minate one progra m coordinator for this entire screening progra m. He will be contacted by depart ment as and when required. v. Assignee has to do the screening work on all working days during month. ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 10 - vi. Assignee will bring all required lab consuma bles, stationary, equipment, man power with tea m at the screening ti me. vii. Assignee has to advertise widely regarding screening in the village by the mean of miking, f olk media, etc . viii. A laborator y t echnician will be with mi ni mu m qualification of MLT/ DM LT with s cience graduate. While para medical workers will be with minimu m qualification of SI . ix. These all staff must be trained for DTT testing before the screening. As after going through it, it is apparent and clear fro m the ter ms of the agreement that technical persons carried out tests and Laborator y Technician will be with mini mu m qualif ication of MLT/ DMLT with science graduate while para medic al worker will be with min i mu m qualification of SI . It is clear that aforesaid services co me within Section 194J and 194C of the Act. Therefore , we do not find any a mbiguity in the order passed by the learned CIT(A) . In our considered opinion, learned CIT(A) has passed a detailed and reasoned order and sa me does not required any interfere nce at our end. 9. Learned AR cited a judg ment in case of Arihant Charitable Trust vs. ITO( TDS)-1, Indore, I TA No. 909/Ind/2019 as follows: ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 11 - “ 1 . 7 . 3] A t t h e o u t s e t , i t i s w o r t h h i g h l i g h t i n g t h at f o r a n y p a y m e n t t o f a l l w i t h i n t h e p u r v i e w o f ' f e e s f o r t e c h n i c a l se r v i c e s ' , i t i s o f u t m o s t i m p o r t a n c e t h a t p a y m e n t i s m a d e f o r ' s e r v i c es ' w h i c h a r e ' t e c h n i c a l i n n a t u r e ' . 1 . 7 . 4] I t h a s b e e n c a t e g o r i c a l l y s t a t e d o n P a g e N o . 4 2 4 - 4 2 5 o f t h e E l e v e n t h E d i t i o n o f K a n g a & P a l k h i v a l a ' s ' T h e L a w an d P r a c t i c e o f I n c o m e T a x " t h a t i f t h e p a y m e n t i s m a d e f o r a v a il i n g S t a n d a r d F a c i l i t i e s , t h e n , i t w o u l d n o t b e t e r m e d a s " F e e s fo r T e c h n i c a l S e r v i c e s " . [ P a g e N o . 4 1 - 4 2] 1 . 7 . 5] T h e H o n ' b l e S u p re m e C o u r t o f I n d i a i n t h e c a s e o f C I T - 4 , M u m b a i v . K o t a k S e c u r i ti e s L t d . a s r e p o r t e d i n [ 2 0 1 6] 38 3 I T R 1 ( S C ) h a d a n o c c a s i o n to e l a b o r a t e l y d i s c u s s t h e d i f f e r e n c e b e t w e e n " f a c i l i t i e s " a n d " s er v i c e s " a n d t h e H o n ' b l e S u p r e m e C o u r t o f I n d i a h a s c a t e g o r i c a l l y h el d t h a t " T e c h n i c a l s e r v i c e s " l i k e " M a n a g e r i a l a n d C o n s u l t a nc y s e r v i c e " w o u l d d e n o t e s e e k i n g o f s e r v i c e s t o c a t e r t o t h e s pe c i a l n e e d s o f t h e c o n s u m e r / u s e r a s m a y b e f e l t n e c e s s a r y a n d t h e m a k i n g o f t h e s a m e a v a i l a b l e b y t h e s e r v i c e p r o v i d e r a n d i f t h e r e i s n o t h i n g s p e c i a l , e x c l u s i v e o r c u s t o m i z e d i n t h e s e r v i c e , t he n , s u c h s e r v i c e s , w o u l d u n d o u b t e d l y b e t e r m e d a s " f a c i l i t i e s " a n d w i ll n o t t a n t a m o u n t t o " t e c h n i c a l s e r v i c e s " s o a s t o a t t r a c t t h e p r o v i s i o n s o f s e c t i o n 1 9 4 J o f t h e I n c o m e - T a x A c t , 1 9 6 1 . We are of the view that abovesaid judgment is not applicable in this case. 10. In the result, appeal filed by the assessee for A.Y. 2013-14 is dismissed. 11. ITA Nos. 1073 & 1074/Ahd/2017 for A.Ys . 2014-15 & 2015-16 are concerned, as we have dismissed appeal of the assessee for A.Y. 2013-14, so, in similar f acts and ITA Nos. 1072 to 1074/Ahd/2017 (Gujarat Sickle Anemia Control Society vs. DCIT) AYs. 2013-14 to 2015-16 - 12 - circu mstances, the sa me shall apply mutatis mutandis in other two appeals. 12. In the result, all three appeals filed by the Assessee are dismissed. Sd/- Sd/- ( WASEEM AHMED) (MAHAVIR PRASAD) ACC OUNTANT MEMB ER JUDICIAL MEMBER Ahmedabad: Dated 18/04/2022 True Copy S.K.SINHA ेश ! " #े" / Copy of Order Forwarded to:- $. र / Revenue 2. आ दक / Assessee '. सं(ं)* आयकर आय + / Concerned CIT 4. आयकर आय + - अपील / CIT (A) .. / 0 1ीय 2 2 )*3 आयकर अपील य अ)*कर#3 अ45द ( द / DR, ITAT, Ahmedabad 6. 1 78 9 ल / Guard file. By order/आद श स 3 उप/स4 यक पं ीक र आयकर अपील य अ)*कर#3 अ45द ( द । This Order pronounced in Open Court on 18/04/2022