Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT
Live LawOn finding that CIT has failed to consider all submission of assessee and evidences placed on record, the New Delhi ITAT restored the matter back to file of AO for fresh adjudication regarding the TDS deduction u/s 194J or u/s 194C of the Income Tax Act, 1961 on the payments made towards maintenance of X-Ray machine and CVC machine. However, the AO was of the view that the assessee should have deducted TDS u/s 194J at 10% on payments made for maintenance of X-Ray and CVC machines as fees paid for professional and technical services. The AO passed order u/s 201 and 201 treating the payments made towards maintenance of x ray machine and CVC machine as charges for professional services and deducted TDS @10% u/s 194J. The assesses has deducted TDS u/s 194C of the Act in regard to payments on AMC of medical equipment and machines etc.” The Bench noted that the contention of the assessee that the payments made for maintenance of X-ray machine and CVC machine attracts TDS u/s 194C and not u/s 194J as professional charges was rejected and was treated as fee for professional and technical services as per section 194J attracting TDS @10% as against 1% made by the assessee u/s 194C.