M/s Aarogyasri Health Care Trust, Hyderabad V. ITO,Ward 14(2), Hyderabad

ITA 411/HYD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6615 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-04-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 11-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Assessee Lawyers: A V RAGHURAM
• Keywords: Principle of natural justice
• Section: 133A; 201(1)

Judgement Text

ITA NO 411 OF 2014 AROGYASRI HEALTHCARE TRUST HYDER ABAD PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI P. MADHAVI DEVI, JUDICIAL MEMBER & SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.411/HYD/2014 (ASSESSMENT YEAR:2010-11) M/S. AAROGYASRI HEALTH CARE TRUST HYDERABAD PAN: AACTA 1372 P VS INCOME TAX OFFICER WARD 14(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHURAM FOR REVENUE : SHRI M. SITARAM, DR DATE OF HEARING : 25.04.2016 DATE OF PRONOUNCEMENT : 29 . 04.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE CIT (A) CONFIRMING THE DISALLOWANCES MADE BY THE AO U/S 201 (1) AND 201(1A) OF THE I.T. ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PUBLIC TRUST FORMED BY THE GOVT. OF ANDHRA PRADESH AND ACT S AS AN INDEPENDANT NODAL AGENCY FOR THE GOVERNMENT TO PROV IDE HEALTH COVERAGE UNDER THE AROGYASRI SCHEME. IT WAS FOUND T HAT THE ASSESSEE TRUST WAS MAKING PAYMENT TO A NETWORK OF H OSPITALS ITA NO 411 OF 2014 AROGYASRI HEALTHCARE TRUST HYDER ABAD PAGE 2 OF 5 WITHOUT ADHERING TO THE TDS PROVISIONS U/S 194J OF THE I.T. ACT FROM THE FINANCIAL YEAR 2008-09. THEREFORE, A SURVE Y U/S 133A OF THE IT ACT WAS CONDUCTED ON THE PREMISES OF THE ASS ESSEE ON 15.10.2009 TO VERIFY THE APPLICATION OF TDS PROVISI ONS AND THE ASSESSEES COMPLIANCE THERETO. CONSEQUENT TO THE SU RVEY OPERATIONS, THE ORDERS U/S 201(1) AND 201(1A) WERE PASSED ON 19.02.2010 FOR THE A.YS 2010-11 AND 2009-10 WHICH R ESULTED IN DEMAND. THOUGH THE ASSESSEE DEDUCTOR ACCEPTED IN PR INCIPLE, ITS DEFAULT OF NON DEDUCTION OF TDS PAYMENT BEING MADE TO THE HOSPITALS AND STARTED REMITTING THE APPLICABLE TDS SINCE MARCH, 2010, AN APPEAL WAS PREFERRED BEFORE THE CIT (A) AG AINST THE ABOVE MENTIONED ORDERS. THE ISSUE TRAVELLED UPTO TH E ITAT AND THE ITAT REMANDED THE ISSUE TO THE FILE OF THE AO W ITH CERTAIN DIRECTIONS. IN THE CONSEQUENTIAL ORDER, THE AO HAS CALLED FOR CERTAIN DETAILS FROM 16 HOSPITALS AND RECEIVED INFO RMATION ONLY FROM 13 HOSPITALS AND ON THE BASIS OF THE MATERIAL AVAILABLE WITH HIM, HE MADE CERTAIN ADDITIONS FOR SHORT DEDUCTION OF TDS U/S 201(1) AND ALSO LEVIED INTEREST U/S 201(1A) OF THE ACT. AGAINST THE SAME, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE C IT (A) STATING THAT THE AO HAS ERRED IN COMPUTING THE TDS ON ENTIR E PAYMENT IN RESPECT OF HOSPITALS IN WHOSE CASES THE RECEIPTS ADMITTTED BY THEM IS NOT MATCHING WITH THE PAYMENTS BY THE TRUST BY NOT ITA NO 411 OF 2014 AROGYASRI HEALTHCARE TRUST HYDER ABAD PAGE 3 OF 5 CONSIDERING EVEN THE AMOUNT ADMITTED BY SUCH HOSPIT ALS. THE CIT (A) HOWEVER, DISMISSED ASSESSEES APPEAL HOLDIN G THAT THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE TO PROVE ITS CLAIM EXCEPT STATING THAT THE AO HAS NOT MADE SINCERE EFFORTS TO OBTAIN INFORMATIN FROM THE HOSPITALS. AGAINST THIS ORDER O F THE CIT (A), ASSESSEE IS IN APPEAL BEFORE US. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE ASSESSEE WAS READY TO COOPERATE WITH THE AO IN COMPLETING THE ASSESSMENT AT THE EARLIEST. HE SU BMITTED THAT WHEN THE AO HAS OBTAINED THE INFORMATION FROM 13 HO SPITALS OUT OF THE 16 HOSPITALS, THE ASSESSEE WAS NOT GIVEN AN OPPORTUNITY TO CROSS VERIFY THE INFORMATION FILED BY SUCH HOSPITAL S. HE, THEREFORE, PRAYED THAT THE ASSESSEE MAY BE GIVEN AN OPPORTUNIT Y TO REBUTT THE DISCRIPANCIES, IF ANY, FOUND IN THE INFORMATION FURNISHED BY SUCH HOSPITALS AND THE INFORMATION AVAILABLE FROM I TS RECORD. 4. THE LEARNED DR HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE AO HAS ACQ UIRED THE INFORMATION FROM THE RELEVANT PARTIES AND HAS MADE ADDITIONS TO THE INCOME OF THE ASSESSEE AND THEREFORE, ACCORDING TO HIM THERE WAS NO REQUIREMENT OF REMAND PROCEEDINGS. ITA NO 411 OF 2014 AROGYASRI HEALTHCARE TRUST HYDER ABAD PAGE 4 OF 5 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL AVAILABLE ON RECORD, WE FIND THAT THE TRIBUNAL HAS SET ASIDE THE PROCEEDINGS TO THE AO WITH A DIRECTION TO GET A BRE AK-UP OF THE PROFESSIONAL FEE AND FEE FOR OTHER SERVICES SUCH AS BED CHARGES, MEDICINE, FOLLOW-UP SERVICES, TRANSPORTATION CHARGE S, IMPLANT ETC. AND ALSO TO VERIFY THE DETAILS OF THE EXPENDITURE F ROM BLACK LISTED HOSPITALS WITH REGARD TO WHETHER PAYMENTS MADE BY T HE ASSESSEE HAS BEEN DISCLOSED IN THE INCOME OF THE AFORESAID H OSPITALS. FROM THE ABOVE IT IS CLEAR THAT THE AO WAS DIRECTED TO M AKE FACTUAL VERIFICATION OF THE DETAILS. WHEN SUCH IS THE CASE, THE FACTS GATHERED OR ACQUIRED BY THE AO NEED TO BE CONFRONTE D WITH THE ASSESSEES INFORMATION AND VERIFY THE CORRECTNESS O F THE SAME. IN THE CASE BEFORE US, IT IS CLEAR THAT IN THE REMAND PROCEEDINGS, THE AO HAS NOT CONFRONTED ASSESSEE WITH THE MATERIAL GA THERED BY HIM AND THEREFORE, THERE IS CLEAR VIOLATION OF PRIN CIPLES OF NATURAL JUSTICE AS THE ASSESSEE WAS NOT GIVEN ANY OPPORTUNI TY OF REBUTTAL. IN VIEW OF THE SAME, WE ARE SATISFIED THAT THE APPE AL NEEDS TO BE REMITTED BACK TO THE FILE OF THE AO. AO IS THEREFOR E, DIRECTED TO RECONSIDER THE MATERIAL AFTER GETTING THE ASSESSEE S OBJECTIONS, IF ANY, TO THE MATERIAL GATHERED BY HIM. ASSESSEE SHAL L ALSO COOPERATE WITH THE AO FOR THE EARLY ASSESSMENT OF I TS INCOME. ITA NO 411 OF 2014 AROGYASRI HEALTHCARE TRUST HYDER ABAD PAGE 5 OF 5 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH APRIL, 2016. S D/ - S D/ - (S.RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 29 TH APRIL, 2016. VNODAN/SPS COPY TO: 1. K. VASANTKUMAR & A.V. RAGHURAM, ADVOCATES, 610, 6 TH FLOOR BABUBKHAN ESTATE, BASHEERBAGH, HYDERABAD-1 2. INCOME TAX OFFICER WARD 14(2) I.T. TOWERS, HYDERABA D 3. CIT(A) -VIJAYAWADA 4. CIT (TDS) HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER