Matter set aside as facts not examined properly by lower authorities

Bhatia General Hospital Vs ITO (ITAT Mumbai)

ITAT Mumbai set aside the matter for fresh adjudication as none of the aspects and the relevant facts have been properly looked into and examined by the lower authorities

Facts- The assessee has contended that, as per the Memorandum of Understanding (MOU) with M/s. Bombay MRI Pvt. Ltd (MRI company), the assessee was only supervising and collecting the MRI charges from the patients at the Hospital for the purpose of effectively ensuring supervision and control of the prices and timely collections on behalf of the MRI company. It has been claimed that these MRI charges collected from the patients were reimbursed/paid to the MRI company after reducing the fixed fee which was agreed upon to be paid to the assessee for rendering such collection and supervision services.

According to the assessee, it was not liable to deduct tax at source on these MRI charges paid back to the MRI company. Hence, it has been urged that the question of levy of interest under Section 201(1A) of the Income Tax Act does not arise.

Conclusion- Neither the assessee nor the lower authorities have been able to bring on record the correct facts as to the relationship between the assessee and the MRI company viz., whether it is a principal-agent or principal -principal relationship. Hence, the contentions raised by the assessee before us remains unsubstantiated and unverified.

Please become a Premium member. If you are already a Premium member, login here to access the full content.