DCIT (TDS) 2(1), MUMBAI V. JASLOK HOSPITAL & RESEARCH CENTRE, MUMBAI

ITA 503/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93045 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Assessment Year: 2008-2009
• Appeal Filed On: 22-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Assessee Lawyers: KOMAL MOTA
• Section: 194C; 201(1)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J MUMBAI . . , . . , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI B.R.BASKARAN, ACCOUNTANT MEMBER . / ITA NO. 503/MUM/2014 / ASSESSMENT YEAR 2008-09 DY.COMMISSIONER OF INCOME TAX (TDS)-2(1), R.NO.702, 7 TH FLOOR, SMT. K.G.MITTAL AYURVEDIC HOSPITAL BUILDING, CHARNI ROAD, MUMBAI 400 002. / VS. M/S. JASLOK HOSPITAL & RESEARCH CENTER, 15, DR. G. DESHMUKH MARG, MUMBAI 400 026. ./ ./ PAN/GIR NO. : AAAAJ 0028Q ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY SHRI LOVE KUMAR RESPONDENT BY : MS. KOMAL MOTA # $ % / DATE OF HEARING : 30/06/2015 # $ % / DATE OF PRONOUNCEMENT : 03/07/2015 / O R D E R PER I.P.BANSAL, JM: THIS IS AN APPEAL FILED BY THE REVENUE AND IT IS DIRECTED AGAINST ORDER PASSED BY LD. CIT(A)-14, MUMBAI DATED 01/11/2013 FO R ASSESSMENT YEAR 2008-09. GROUNDS OF APPEAL READ AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED BY HOLDING THAT PROVISION OF SEC. 194C ARE APPLICABLE AND NOT THE PROVISION OF SEC. 194H AS HELD BY THE AO WITHOU T APPRECIATING THE FACT THAT THE DRUG HANDLING CHARGES ARE IN THE NATU RE OF THE COMMISSION AND CANNOT BE HELD AS CONTRACTUAL CHARGES AND THERE BY ERRED IN DELETING THE SHORT DEDUCTION U/S. 201(1) AND INTEREST U/S. 201(1A). . / ITA NO. 503/MUM/2014 / ASSESSMENT YEAR 2008-09 2 2. IT WAS SUBMITTED BY LD. AR THAT THE AFOREMENTIO NED GROUNDS OF APPEAL IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDERS O F TRIBUNAL IN ASSESSEES OWN CASE IN ITA NOS.2894 TO 2896/MUM/2009 & ITA NOS. 3 100 TO 3103/MUM/2009 RESPECT OF A.Y. 2005-06 TO 2007-08 AND REFERENCE WAS MADE TO THE FOLLOWING OBSERVATIONS: 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE AGREEMENT REFERRED TO BY THE LD. SENIOR COUNSEL WHICH IS PART OF THE PAPER BOOK EXHIBITED AT PAGES 13 TO 17. A CAREFUL PERUSAL OF THE AGREEMENT CLEARLY SHOW THAT THE AGREEMENT BETWEEN T HE ASSESSEE AND MRS. POONAM C MALANI AND MRS. BEENA MIRCHANDANI IS TESTI MONY TO THE FACT THAT THERE IS NO PRINCIPAL-AGENT RELATIONSHIP BETWEEN THE TWO RATHER THE AGREEMENT LIST OUT THE TASK TO BE CARRIED OUT BY THE INDEPENDENT AGENC Y ENGAGED TO LOOK AFTER THE REGULAR RUNNING OF THE DRUG STORES MANAGED BY THE H OSPITAL. WE AGREE WITH THE FINDINGS OF THE LD. CIT(A) THAT THE PAYMENT MADE BY THE ASSESSEE IS A CONTRACTUAL PAYMENT PURSUANT TO THE AGREEMENT AND HENCE THE ASS ESSEE WAS OBLIGED TO DEDUCT TAX U/S. 194C OF THE ACT ONLY. WE THEREFOR E DO NOT FIND ANY REASON TO TAMPER WITH THE FINDINGS OF THE LD. CIT(A). GROUND NO. 1 IS ACCORDINGLY DISMISSED. 3. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOT H THE PARTIES, RESPECTFULLY FOLLOWING THE AFOREMENTIONED DECISION OF THE TRIBU NAL WE DISMISS THE REVENUES APPEAL. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03/07/2015 # + , - 03/07/2015 # SD/- SD/- ( . . / B.R.BASKARAN ) . . /I.P.BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; , DATED 03/07/2015 . / ITA NO. 503/MUM/2014 / ASSESSMENT YEAR 2008-09 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. /$ ( ) / THE CIT(A)- 4. /$ / CIT 5. 01 $23 , % 23 , / DR, ITAT, MUMBAI 6. 4 / GUARD FILE. / BY ORDER, 0$ $ //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . . ./ VM , SR. PS