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4. The Ld. CIT (DR) Sh. Laxman Singh argued and invited our attention to the various provisions contained in the contracts submitted and various paras of the order u/s 201(1) & 201(1A) that only services are technical services, which required a special skill and the same cannot be done otherwise than by a technical or a professional person. For the meaning assigned to the term 'fees' for technical services, the Explanation (2) to section 9(1)(vii) has to be taken into consideration. Mr. Laxman Singh, the Ld. DR further invited our attention to the agreement with M/s. Thermtronics Krilsoker Pvt. Ltd; for maintenance of theatre and surgical for which specialist is required who will visit and carry out the maintenance service and also emergency break down calls. Similarly, findings of the AO were shown to the Bench with regard to the RO system maintenance by M/s. Ridham Marketing Services, CT Scan system by M/s. Wipro GE Medical System and MRI machine by M/s. Siemens Ltd; and Lift maintenance by M/s. Otis Elevator as well as sterlisation and medical equipment by M/s. Xpert Technical Services and Anti Termite Treatment by M/s. Global Pest Control Organization etc. However, the Ld. DR remained silent about the supply of Bread & Butter by Mr. Rakesh Kumar Malhotra and supply of security and personnel by M/s. Dogra Placement Services. The Ld. DR prayed to restore the order of the AO and reverse the order of the CIT(A).

6.2. As regards the appeal on merits, as argued by both the parties and facts available on record, we are of the view that whole issue is with regard to the contracts entered into by the assessee, which is a Govt. Medical College at Jammu, has entered into agreements with various parties to maintain operation theatre and surgical equipments, RO system, CT Scan Machine, MRI machine, Lift, Sterlisation and Medical equipments along with Anti-termite treatment and also there were contracts for supply of Bread and Butter and supply of security and personnel. As regards supply of Bread and Butter and supply of security and personnel, we do not see any technical part or technical services as per facts available on record. As regards other services, whether the same is contract u/s 194C of the Act or technical service u/s 194J of the Act, has to be perused. The assessee has claimed a contract u/s 194C of the Act. Therefore, we have to peruse whether the professional or technical services u/s 194J of the Act, which provides any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of (a) fees for professional services, or (b) fees for technical services, shall at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode whichever is earlier, deduct an amount equal to ten percent of such sum as income-tax on income comprised therein. This 10% has been inserted by the Finance Act w.e.f. 01.06.2007 in place of 5%. As per Explanation of section 194J, professional services and fees for technical services has been defined as under:

6.5. As regards anti-termite treatment for which the agreement was made with M/s. Global Pest Control Organization. This treatment though does not require technical expertise but it requires professional skill for the reason the spray of the anti termite chemicals in the premises or the machine, requires a highly and professionalized skill, in the absence of which there can be a loss to the life of the human being living therein, especially in the Medical College where the patients are admitted who visit the hospital for their treatment, have to be taken care. If spray is made by a person who is not professional or without any professional skill then consequences can be otherwise. Therefore, in the facts and circumstances of the case, we are of the view that this service has to be treated as professional service to be included for the purpose of section 194J read with section 9(1)(vii) Explanation (2). In the facts and circumstances of the case, except for the supply of Bread & Butter by Mr. Rakesh Kumar Malhotra and supply of security & personnel by M/s. Dogra Placement Services, we uphold the findings of the AO and reverse the findings of the ld. CIT(A). Accordingly, the appeal of the Revenue is partly allowed.