The Bombay High Court Bench constituting of Justices S.C. Dharmadhikari and B.P. Colabawalla in the case of Pr. Commissioner of Income Tax v. National Health and Education Society affirmed the orders passed by the lower authorities holding that there existed no ‘question of law’ in the issues before the present Court.
The Hon’ble Court affirming the decisions passed by the lower authorities held that:
- The Tribunal was correct in holding that there exists no relationship of employer and employee between the assessee – Grant Medical Foundation (Ruby Hall Clinic) and the Consultant doctors employed in the hospital.
- The ITAT gave its opinion that the activities carried out by both the aforesaid entities, namely, Hinduja TMT/Hinduja Global Solutions Ltd., do not fall under the head ‘technical or professional services’. In these circumstances, the ITAT held that the CIT (Appeals) was fully justified in holding that TDS was correctly deducted under Section 194C of the Act.
- The CIT (Appeals) and thereafter ITAT noted that M/s Saxsons Biotech arranges a particular drug, which is not ordinarily available in the market. The invoice raised by M/s Saxsons Biotech consist of two parts, one is of actual cost of the material supplied and the other is for the service charges on which tax is deducted under Section 194C. After noting all these facts, the CIT (Appeals) held that the assessee had correctly deducted TDS under Section 194C.
The ITAT noted that the CIT (Appeals) after considering the order passed by the Assessing Officer, the submissions of the assessee and the nature of services carried out by the service providers, held that payments made to the Hinduja Foundation was towards reimbursing the salaries of Senior Management Personnel deputed by Hinduja Foundation to the assessee – hospital.To Read the full text of the Judgment CLICK HERE