Income Tax Appellate Tribunal - Hyderabad
M/S Aarogyasri Health Care Trust,, ... vs Assessee on 29 April, 2016
ITA No 411 of 2014 Arogyasri Healthcare Trust Hyderabad
IN THE INCOME TAX APPELLATE TRIBUNAL
Hyderabad 'A' Bench, Hyderabad
Before Shri P. Madhavi Devi, Judicial Member
& Shri S. Rifaur Rahman, Accountant Member
ITA No.411/Hyd/2014
(Assessment year:2010-11)
M/s. Aarogyasri Health Vs Income Tax Officer
Care Trust Ward 14(2)
Hyderabad Hyderabad
PAN: AACTA 1372 P
(Appellant) (Respondent)
For Assessee : Shri A.V. Raghuram
For Revenue : Shri M. Sitaram, DR
Date of Hearing : 25.04.2016
Date of Pronouncement : 29.04.2016
ORDER
Per Smt. P. Madhavi Devi, J.M.
This is assessee's appeal against the order of the CIT (A) confirming the disallowances made by the AO u/s 201(1) and 201(1A) of the I.T. Act.
2. Brief facts of the case are that the assessee is a Public Trust formed by the Govt. of Andhra Pradesh and acts as an independant nodal agency for the government to provide health coverage under the Arogyasri scheme. It was found that the assessee Trust was making payment to a network of hospitals Page 1 of 5 ITA No 411 of 2014 Arogyasri Healthcare Trust Hyderabad without adhering to the TDS provisions u/s 194J of the I.T. Act from the financial year 2008-09. Therefore, a survey u/s 133A of the IT Act was conducted on the premises of the assessee on 15.10.2009 to verify the application of TDS provisions and the assessee's compliance thereto. Consequent to the survey operations, the orders u/s 201(1) and 201(1A) were passed on 19.02.2010 for the A.Ys 2010-11 and 2009-10 which resulted in demand. Though the assessee deductor accepted in principle, its default of non deduction of TDS payment being made to the hospitals and started remitting the applicable TDS since March, 2010, an appeal was preferred before the CIT (A) against the above mentioned orders. The issue travelled upto the ITAT and the ITAT remanded the issue to the file of the AO with certain directions. In the consequential order, the AO has called for certain details from 16 hospitals and received information only from 13 hospitals and on the basis of the material available with him, he made certain additions for short deduction of TDS u/s 201(1) and also levied interest u/s 201(1A) of the Act. Against the same, the assessee preferred an appeal before the CIT (A) stating that the AO has erred in computing the TDS on entire payment in respect of hospitals in whose cases the receipts admittted by them is not matching with the payments by the Trust by not Page 2 of 5 ITA No 411 of 2014 Arogyasri Healthcare Trust Hyderabad considering even the amount admitted by such hospitals. The CIT (A) however, dismissed assessee's appeal holding that the assessee has not produced any evidence to prove its claim except stating that the AO has not made sincere efforts to obtain informatin from the hospitals. Against this order of the CIT (A), assessee is in appeal before us.
3. At the outset, the learned Counsel for the assessee submitted that the assessee was ready to cooperate with the AO in completing the assessment at the earliest. He submitted that when the AO has obtained the information from 13 hospitals out of the 16 hospitals, the assessee was not given an opportunity to cross verify the information filed by such hospitals. He, therefore, prayed that the assessee may be given an opportunity to rebutt the discripancies, if any, found in the information furnished by such hospitals and the information available from its record.
4. The learned DR however, supported the orders of the authorities below and submitted that the AO has acquired the information from the relevant parties and has made additions to the income of the assessee and therefore, according to him there was no requirement of remand proceedings.
Page 3 of 5
ITA No 411 of 2014 Arogyasri Healthcare Trust Hyderabad
5. Having regard to the rival contentions and the material available on record, we find that the Tribunal has set aside the proceedings to the AO with a direction to get a break-up of the professional fee and fee for other services such as bed charges, medicine, follow-up services, transportation charges, implant etc. and also to verify the details of the expenditure from black listed hospitals with regard to whether payments made by the assessee has been disclosed in the income of the aforesaid hospitals. From the above it is clear that the AO was directed to make factual verification of the details. When such is the case, the facts gathered or acquired by the AO need to be confronted with the assessee's information and verify the correctness of the same. In the case before us, it is clear that in the remand proceedings, the AO has not confronted assessee with the material gathered by him and therefore, there is clear violation of principles of natural justice as the assessee was not given any opportunity of rebuttal. In view of the same, we are satisfied that the appeal needs to be remitted back to the file of the AO. AO is therefore, directed to reconsider the material after getting the assessee's objections, if any, to the material gathered by him. Assessee shall also cooperate with the AO for the early assessment of its income. Page 4 of 5
ITA No 411 of 2014 Arogyasri Healthcare Trust Hyderabad
6. In the result, assessee's appeal is treated as allowed for statistical purposes.
Order pronounced in the Open Court on 29th April, 2016.
Sd/- Sd/-
(S.Rifaur Rahman) (P. Madhavi Devi)
Accountant Member Judicial Member
Hyderabad, dated 29th April, 2016.
Vnodan/sps
Copy to:
1. K. Vasantkumar & A.V. Raghuram, Advocates, 610, 6th Floor Babubkhan Estate, Basheerbagh, Hyderabad-1
2. Income Tax Officer Ward 14(2) I.T. Towers, Hyderabad
3. CIT(A) -Vijayawada
4. CIT (TDS) Hyderabad
5. The DR, ITAT, Hyderabad
6. Guard File By Order Page 5 of 5