Kiran Infertility Centre Pvt Ltd., Hyd, Hyderabad V. Deputy Commissioner of Income Tax ,Circle-2(1), Hyderabad

MA 25/Hyd/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3341 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-06-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2010-2011
• Appeal Filed On: 15-04-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Business expenditure; TDS
• Section: 194C; 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER M.A. NO. 25/HYD/2021 (ARISING OUT OF ITA NOS. 866 TO 868/H/16 & 1673/H/ 17) ASSESSMENT YEARS: 2010-11 TO 2013-14 KIRAN INFERTILITY CENTRE PVT. LTD., HYDERABAD [PAN: AABCK6053F] VS INCOME TAX OFFICER, WARD-2(1), HYDERABAD (FOR AYS.2010-11 TO 2012-13) DY.COMMISSIONER OF INCOME TAX, CIRCLE-2(1), HYDERABAD (FOR AY.2013-14) (APPLICANT) (RESPONDENT) FOR ASSESSEE : SHRI S.RAMA RAO, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 07-05-2021 DATE OF PRONOUNCEMENT : 11-06-2021 O R D E R PER S.S.GODARA, J.M. : HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. 2. THE ASSESSEES INSTANT MISCELLANEOUS APPLICATION F ILED U/S.254(2) OF THE ACT SEEKS TO RECALL/RECTIFY THE TRIBUN ALS ORDER DT.08-04-2021 DISMISSING THE MAIN APPEAL(S) THEREBY UPHOLDING SECTION 194C DISALLOWANCE(S) ON ACCOUNT OF FAILURE TO DEDUCT TDS ON ALLEGED SURROGACY PAYMENTS MADE TO THE PAYEE SHRI SESHA SAI ETC. MA NO. 25/HYD/2021 :- 2 -: 3. LEARNED AUTHORISED REPRESENTATIVE AT THE OUTSET STATED THAT THE ASSESSEE RESTRICTS ITS CHALLENGE ONLY TO A PORTI ON IN THE INSTANT MISCELLANEOUS APPLICATION TO THE TRIBUNALS ORDER TO THE FOLLOWING EFFECT: 27. BEFORE PARTING, WE DEEM IT APPROPRIATE TO OBSE RVE IN LIGHT OF THE ABOVE NARRATED FACTS OF THE POOR AND DESTITUTE WOME NS WOMBS EXPLOITATION EVIDENT HEREIN IN MOST HEINOUS MANNER THAT THE LEARNED CIT-DR SHALL FORWARD A COPY OF OUR INSTANT DETAILED DISCUSSION TO THE SECRETARY, MINISTRY OF WOMAN AND CHILD WELFARE, GOV ERNMENT OF INDIA, NEW DELHI AND THE CORRESPONDING DEPARTMENT I N THE STATE OF TELANGANA SO THAT SUCH PRACTICES ARE ALTOGETHER CUR BED. WHILST DIRECTING SO, WE QUOTE HON'BLE BOMBAY HIGH COURTS FULL BENCHS DECISION AHMEDABAD ELECTRICITY CO., LTD. VS. CIT ( 1993) 199 ITR 351 (BOM) THAT SECTION 254 INVOLVING THE STATUTORY EXPR ESSION MAY PASS SUCH ORDERS AS IT THINKS FIT CONFERS WIDEST POSSI BLE JURISDICTION ON THE TRIBUNAL. WE EXERCISE THE SAME AND ORDER ACCORDING LY. 4. MR.RAMA RAO VEHEMENTLY CONTENDED THAT OUR ABOVE EXTRACTED OBSERVATIONS HAVE BEEN INAPPROPRIATELY RECORD ED WITHOUT HEARING THE ASSESSEE TO THIS EFFECT. AND ALSO THAT IT IS NOT THE ASSESSEE ITSELF BUT THE PAYEE AT THE BEST, WHO WAS FOUND TO HAVE BEEN INDULGED IN THE ALLEGED WRONG DOI NG IN ISSUE; IF ANY. AND THAT THE ASSESSEE/CLINIC HAS BEEN C ARRYING OUT ITS FERTILIZATION ACTIVITY IN SURROGACY ETC STRICTLY AS PER THE RELEVANT RULES AND REGULATIONS. 5. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE ASSESSEES FOREGOING ARGUMENTS AND FIND NO FORCE THE REIN FOR THE REASON THAT ALTHOUGH IT HAD CLAIMED THE IMPUGNED SURROGACY PAYMENTS AS REGULAR BUSINESS EXPENDITURE N OT EXIGIBLE TO ANY TDS DEDUCTION EITHER U/S.194C OR 194 J, IT WAS FOUND DURING THE COURSE OF HEARING THAT IT HAD MADE PAY MENTS SO THAT MIDDLE MEN MR.SESHA SAI ETC. AND THERE WAS NOT EVEN A SLIGHTEST INDICATION THAT THE SAME HAS ULTIMATELY REA CHED THE MA NO. 25/HYD/2021 :- 3 -: SURROGATE MOTHERS CONCERNED. THIS IS WHAT LEAD THE TRIBU NAL TO EXERCISE ITS SECTION 254(1) JURISDICTION IN A WIDER SENSE BY QUOTING HONBLE BOMBAY HIGH COURTS DECISION (SUPRA). WE MAKE IT CLEAR THAT WHETHER OR NOT OUR DIRECTIONS TO THIS E FFECT CONFIRM TO THE LAW OR NOT IS NOT FORM A SUBJECT MATTER OF SECTION 254(2) RECTIFICATION WHICH APPLIES ONLY IN C ASE OF APPARENT MISTAKES ON RECORDS. WE THEREFORE DECLINE THE ASSESSEES MISCELLANEOUS APPLICATION. 6. THIS ASSESSEES MISCELLANEOUS APPLICATION IS DISM ISSED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JUNE, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 11-06-2021 TNMM MA NO. 25/HYD/2021 :- 4 -: COPY TO : 1.KIRAN INFERTILITY CENTRE PRIVATE LTD., C/O. SRI S .RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3-6-643 , STREET NO. 9, HIMAYAT NAGAR, HYDERABAD. 2.THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-2(1), HYDERABAD. 3.THE INCOME TAX OFFICER, WARD-2(1), HYDERABAD. 4.CIT(APPEALS)-KURNOOL. 5. CIT(APPEALS)-2, HYDERABAD. 6.PR.CIT-II, HYDERABAD. 7.D.R. ITAT, HYDERABAD. 8.GUARD FILE.