Case Law Details
CIT Vs M/s. Reliance Life Insurance Co. Ltd. (Bombay High Court)
Assessee had hired the services for various works such as storage of data, scanning of documents, processing charges, call centre operations etc. Looking to the nature of services outsourced, it was held that the same were basically clerical services of repetative nature of work and payments were therefore, neither for managerial nor for technical services. Having perused the documents on record and looking to the nature of services described, we do not find that the Tribunal has committed any error. The work outsourced was in the nature of clerical work and TDS was rightly deducted under section 194C.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. These three appeals filed by the revenue arise out of the common judgment of Income Tax Appellate Tribunal. For convenience, we may record facts from Income Tax Appeal No.604 of 2017. Revenue has presented following questions for our consideration:-
“(a) Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in holding that tax was deductible from payment of outsourcing expenses such as processing charges, call centre operations and business services etc. under section 194C instead of section 194J of the Act without appreciating that the nature of services received by the assessee requires certain parameters of technical/managerial skill of highly specialized competency and falls within the purview of section 194J of the Act and not 194C of the Act?
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