- Vide Decision of High Court Of Bombay in Commissioner of Income-tax (TDS)-2 v. Saifee Hospital
Facts of the Case:
- The supplier of medical equipments to the assessee hospital had also rendered services of maintenance of these equipments. The assessee deducted TDS under section 194C while making payment for maintenance services. However, the revenue authorities sought deduction of TDS under section 194J.
- Further, The Commissioner (Appeals) and Tribunal held that the services which were rendered for maintenance of equipment would not be in the nature of technical services. These services being of routine nature, would not be qualified to be called technical services which would require deduction under section 194J and the purpose of this services was only to ensure a proper maintenance of the machinery/equipment so as to ensure long life for the same.
Therefore, the payments made to the said supplier were payments for work contract covered under section 194C and not fees for technical services under section 194J.
Judgement: On the revenue's appeal to the High Court, High Court dismissed the Appeal for the reason that the concurrent findings of the fact by the earlier authorities has not been shown to be perverse.