ACIT (TDS), Gautam Budh Nagar V. M/s. Inter National Hospital Ltd., New Delhi

ITA 2196/DEL/2013

• Counselvise Citation: 219620114 RSA 2013
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 22-10-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 15-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R M MEHTA
• Assessee Lawyers: SAMEER SHARMA
• Keywords: Tax effect
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H NEW DELHI) BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI J. S. REDDY, ACCUNTANT MEMBER ITA NO. 2195& 2196/ DEL/ 2013 (ASSESSMENT YEAR 2009-10 & 2008-09 ) ACIT, (TDS), VS. M/S. INTER NATIONAL HOSPITAL LTD ., SECTOR 20, NOIDA C/O ESCORT HEAT INSTITUTE & DISTT. GAUTAMBUDHNAGAR RESEARCH CENTRE, OKHLA ROA D, NEW DELHI TAN: MRTI00120B (APPELLANT) (RESPONDENT) ASSESSEE BY: SH. SAMEER SHARMA, DR REVENUE BY: SHRI R M MEHTA, ADV. ORDER PER I. C. SUDHIR, JUDICIAL MEMBER : IN BOTH THESE APPEALS PREFERRED BY THE REVENUE AGA INST COMMON FIRST APPELLATE ORDER THE ISSUE RAISED IS AS TO WHETHER T HE LD CIT(A) HAS ERRED IN DELETING THE ADDITIONS OF RS.2,37,512/- ON ACCOUNT OF SHORT DEDUCTION IN ASSESSMENT YEAR 2008-09 AND RS.1,24,082/- IN ASSESS MENT YEAR 2009-10 WITH THIS FINDING THAT THE PROVISIONS CONTAINED IN SECTI ON 194C IS APPLICABLE ON THE PAYMENTS MADE BY THE ASSESSEE FOR HIRING THE CA RS ETC.? 2. AT THE OUTSET OF HEARING, THE LD. A.R. POINTED O UT THAT IN BOTH THESE APPEALS, THE TAX EFFECT IS BELOW RS.3 LACS AND HENC E, THESE APPEALS PREFERRED BY THE DEPARTMENT IN VIOLATION OF CBDT INSTRUCTION NO.3/2011 DATED I.T.A. NOS.2195,2196 /DEL/2013 2 09.02.2011 & ON PECUNIARY LIMITATION ARE NOT MAINTA INABLE. HE SUBMITTED FURTHER THAT EVEN ON MERITS, THE ASSESSEE HAS GOOD CASE AND THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITIONS IN QUESTION WITH THIS FINDING THAT THE PROVISIONS LAID DOWN U/S 194I OF THE ACT ARE NOT AP PLICABLE IN THE PRESENT CASE. HIS DECISION IS COVERED BY SEVERAL CASE LAWS , ON WHICH HE PLACED RELIANCE. 3. LD. D.R. ON THE OTHER HAND, DID NOT DENY THE ABO VE SUBMISSIONS OF THE LD. A.R. THAT THE TAX EFFECT IN EACH OF THESE TWO A PPEALS PREFERRED BY THE REVENUE IS BELOW RS.3 LACS. 4. CONSIDERING THE ABOVE SUBMISSIONS AND ALSO KEEPI NG IN MIND THAT THE CBDT INSTRUCTIONS PUTTING PECUNIARY LIMITATION FOR PREFERRING APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL AGAINST THE FIRST AP PELLATE ORDER AT RS.3 LACS, HAVING STATUTORY FORCE U/S 268A OF THE ACT, THE PRE SENT APPEALS ARE NOT MAINTAINABLE AS THE SAME HAVE BEEN PREFERRED IN VIO LATION OF THE SAID INSTRUCTION. EVEN ON MERITS, THE ASSESSEE HAS GOT GOOD CASE AND WE FULLY CONCUR WITH THE FINDINGS OF LD. CIT(A) THAT CARRIAG E OF GOODS AND PASSENGERS BY ANY MODE OF TRANSPORT OTHER THAN RAIL WAYS ARE SPECIFICALLY COVERED BY THE EXPRESSION WORK AS DEFINED IN EXPL ANATION III TO SECTION 194C OF THE ACT AND THE PROVISIONS OF SECTION 194-I OF THE AARE NOT APPLICABLE IN THE EXPRESSION PLANT & MACHINERY US ED IN EXPLANATION TO SECTION 194-I REFERRED TO PLANT AND MACHINERY USED BY THE ASSESSEE IN ITS BUSINESS BY HIRING THEM BUT NOT HIRING THE TRANSPOR T SERVICES. IN THE PRESENT CASE, THE AGREEMENTS/CONTRACTS ENTERED BY THE ASSES SEE WHO RUNS A HOSPITAL, WITH THE TRANSPORT SERVICES PROVIDER ARE PRIMARILY IN NATURE OF TRANSPORT CONTRACT/SERVICE CONTRACT FOR PROVIDING TRAVELING F ACILITIES TO STAFF, PATIENT AND I.T.A. NOS.2195,2196 /DEL/2013 3 FOR OTHER DAY TO DAY BUSINESS ACTIVITIES OF THE ASS ESSEE AND NOT FOR HIRING VEHICLES. IT IS ALSO WORTH NOTING THAT THE ASSESSE E ITSELF HAS NOT UTILIZED VEHICLES BUT THEY WERE USED BY THE TRANSPORT CONTRA CTOR FOR FULFILLING THE OBLIGATIONS SET OUT IN THE AGREEMENT. WE ALSO NOTE AS PER THE AGREEMENT THAT NET RUNNING AND MAINTENANCE EXPENDITURE OF THE VEHI CLES IS BORN BY THE TRANSPORT SERVICE PROVIDERS WHO ARE ALSO RESPONSIBL E FOR MAKING ALL OTHER ARRANGEMENTS. THE CONTRACT ENTERED THUS CANNOT BE TERMED AS CONTRACT FOR HIRING THE VEHICLES BUT FOR TRANSPORTATION SERVICES . THE ISSUE RAISED IN THESE APPEALS IS THUS DECIDED IN FAVOUR OF THE ASSESSEE. THE FIRST APPELLATE ORDER IN THIS REGARD IS THUS UPHELD. 5. IN THE RESULT, BOTH THE APPEALS OF THE DEPARTMEN T ARE DISMISSED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST DEC., 2013. SD./- SD./- (J. S. REDDY) (I. C. SUDHIR) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 31 ST DEC., 2013 SP. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XXV, NEW DELHI AR, ITAT, 5. CIT(ITAT), NEW DELHI NEW DELHI