Amrita Institute of Medical Sciences And Research Centre Vs ITO (TDS) (Kerala High Court)
The Kerala High Court addressed a writ petition filed by Amrita Institute of Medical Sciences And Research Centre challenging assessment orders (Ext.P1 and Ext.P2) for the assessment years 2017-18 and 2018-19. The core issue in the appeals (Ext.P3 and Ext.P5) preferred by the petitioner, a super specialty hospital registered under Section 12A of the Income Tax Act, revolved around the appropriate section for Tax Deducted at Source (TDS) on payments made to doctors engaged by the hospital. Specifically, the dispute was whether the TDS should have been deducted under Section 192, which pertains to salary, or under Section 194J, which relates to fees for professional or technical services. The petitioner contested the assessment orders based on the Income Tax Department’s stance on this matter.
Considering the arguments presented and noting that similar cases have been previously directed for expedited disposal, the High Court decided to dispose of the writ petition with a specific direction. The court instructed the 2nd respondent, likely the Income Tax Appellate Tribunal (ITAT), to consider and pass appropriate orders on the pending appeals (Ext.P3 and Ext.P5) for the assessment years 2017-18 and 2018-19 as swiftly as possible, and in any event, within three months from the date of receiving a copy of the judgment. Furthermore, the High Court granted interim relief by directing that all coercive proceedings initiated pursuant to the challenged assessment orders (Ext.P1 and Ext.P2) would be stayed until the appeals are decided by the ITAT. With these directions, the writ petition was disposed of, leaving the substantive decision on the applicability of TDS sections to the appellate authority.
