SECETARY, RAJASTHAN MEDICARE RELIEF SOCIETY, Alwar V. ITO, Alwar

ITA 622/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5092 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA CIT DHK
• Section: 194C; 201(1); 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NOS. 622 & 623/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2011-12 & 12-13. SECRETARY, RAJASTHAN MEDICARE RELIEF SOCIETY, GENERAL HOSPITAL, ALWAR. CUKE VS. THE INCOME TAX OFFICER, TDS ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAAR 3858 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAM BABU GUPTA, ASSTT. ACCOUNTS OFFICER. JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15.09.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 19/09/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST THE ORDER OF LD. CIT(APPEALS), ALWAR BOTH DATED 04.03.2016 PERTAININ G TO ASSESSMENT YEAR 2011-12 AND 12-13. SINCE IDENTICAL GROUNDS HAVE BEEN RAISE D IN BOTH THE APPEALS, THEY ARE BEING DISPOSED BY WAY OF A CONSOLIDATED ORDER, FOR THE SAKE OF CONVENIENCE. 2. FIRST, WE TAKE UP ITA NO. 622/JP/2016 PERTAINING TO A.Y. 2011-12. THE ONLY GROUND RAISED IS AGAINST CHARGING OF TAX U/S 201(1) AND INTEREST U/S 201(1A) FOR NON- DEDUCTION OF TAX UNDER SECTION 194C OF THE I.T. ACT , 1961. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E AO NOTICED THAT DURING THE FINANCIAL YEAR 2010-11 THE ASSESSEE HAS MADE PAYMEN T TO ENGINEER, HEALTH MANAGER AND OTHER EMPLOYEES. ON SUCH PAYMENTS, THE ASSESSEE HAS NOT DEDUCTED TAX UNDER SECTION 194-J AND ALSO THE ASSESSEE HAS NOT DEDUCTE D TAX ON THE PAYMENT MADE TO 2 ITA NOS. 622 & 623/JP/2016 SECRETARY, RAJASTHAN MEDICARE RELIEF SOCIETY RAJASTHAN EX-SERVICEMEN COMPANY UNDER THE CONTRACT. FURTHER, THE AO OBSERVED THAT THE ASSESSEE HAS NOT DEDUCTED TAX ON THE PAYME NT MADE TO THE MEDICINE SUPPLIER APPROVED THROUGH TENDER. AGGRIEVED, THE A SSESSEE INSTEAD OF FILING APPEAL BEFORE LD. CIT (A), FILED RECTIFICATION APPLICATION UNDER SECTION 154 AND THE SAME WAS REJECTED. BEING AGGRIEVED BY THE ORDER DATED 23.01 .2014, THE ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A), WHO AFTER CONSIDERING TH E SUBMISSIONS, DISMISSED THE APPEAL OF THE ASSESSEE. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO HAD MADE ADDITION ON TWO COMPONENTS I.E. THE ASSESSEE HAS FAILED TO DEDU CT TAX ON PAYMENTS MADE TO THE RAJASTHAN EX-SERVICEMEN COMPANY FOR SUPPLYING VARIO US CONTRACTUAL EMPLOYEES AND ALSO ON THE PAYMENTS MADE TO THE ENGINEER, HEALTH M ANAGER AND EMPLOYEES OF THE SOCIETY. THE ASSESSEE IS A AUTONOMOUS BODY AND THE ASSISTANT ACCOUNTS OFFICER SHRI RAM BABU GUPTA APPEARED ON BEHALF OF THE SOCIETY AN D SUBMITTED THAT THE AUTHORITIES BELOW ARE NOT JUSTIFIED IN REJECTING TH E APPLICATION FOR RECTIFICATION. 5.1. ON THE CONTRARY, THE LD. D/R OPPOSED THE SUBMI SSIONS AS THERE IS NO INFIRMITY IN THE ORDER OF THE AUTHORITIES BELOW. 5.2. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD. AS PER SECTION 194-J, THE TAX IS REQUIRED T O BE DEDUCTED IF THE PAYMENT IS MADE BY WAY OF FEE FOR PROFESSIONAL CHARGES OR FEE FOR TECHNICAL SERVICES. IN OUR CONSIDERED VIEW, THE AO HAS MISCONSTRUED THE PROVIS ION. SECTION 194-J WOULD NOT BE APPLICABLE ON THE FACTS OF THE PRESENT CASE. THEREF ORE, WE DIRECT THE AO TO DELETE THE ADDITION. 3 ITA NOS. 622 & 623/JP/2016 SECRETARY, RAJASTHAN MEDICARE RELIEF SOCIETY 5.3. IN REGARD TO THE GRIEVANCE IN RESPECT OF OTHER ADDITION I.E. WITH REGARD TO ADDITION MADE FOR NON DEDUCTION OF TAX ON THE PAYME NT MADE TO SUPPLIER OF MEDICINES, THESE ARE NOT THE CONTRACTUAL PAYMENT FO R PURCHASE OF MEDICINES, THUS, THIS WOULD NOT FALL WITHIN THE SWEEP OF SECTION 194 C OF THE ACT. THEREFORE, IN OUR CONSIDERED VIEW, THE AUTHORITIES BELOW ARE NOT JUST IFIED IN MAKING THE ADDITION. THE ADDITION IS, THEREFORE, DIRECTED TO BE DELETED. 5.4. THE APPEAL IS ALLOWED. ITA NO. 623/JP/2016 : 6. THE GROUND RAISED IN THIS APPEAL IS SIMILAR TO G ROUND RAISED IN ITA NO. 622/JP/2016, WHICH WE HAVE ADJUDICATED HEREIN ABOVE . SINCE IN THAT APPEAL WE HAVE DECIDED THAT NO TAX IS DEDUCTIBLE BY THE ASSES SEE AND THE APPEAL IS DECIDED IN FAVOUR OF THE ASSESSEE, THEREFORE, BY FOLLOWING THE DECISION ARRIVED AT IN ITA NO. 622/JP2016, WE ALLOW THE APPEAL OF THE ASSESSEE IN ITA NO. 623/JP2016 ASSESSMENT YEAR 2012-13. 7. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOW ED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 19.09 .2016. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 19/09/2016. DAS/ 4 ITA NOS. 622 & 623/JP/2016 SECRETARY, RAJASTHAN MEDICARE RELIEF SOCIETY VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SECRETARY, RAJASTHAN MEDICARE RE LIEF SOCIETY, ALWAR. 2. THE RESPONDENT THE ITO (TDS), ALWAR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 622 & 623/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR