Kerala HC Directs IT Dept to Decide Amrita Institute’s TDS Appeal Within 3 Months

The Kerala High Court ruled in favour of the Amrita Institute of Medical Science and Research, directing the income tax department to resolve the appeal within three months.

The case was associated with a non-disposal of appeal on the applicability of the Tax Deducted at Source (TDS) deduction to doctors engaged by the hospital.

The applicant, Amrita Institute of Medical Sciences and Research contested the assessment orders for the years 2017-18 and 2018-19. Applicant is a super speciality hospital and is registered u/s 12A of the Income Tax Act, 1961 (‘the Act’).

The orders were passed concerning the above-said assessment years against which the appeals have been filed. The problem for consideration in both appeals is whether the TDS deducted from the incurred payments to the Doctors involved by the hospital should have been u/s 192 or u/s 194J of the Act.

It was cited by Section 194 J(1) (ba) of the Income Tax Act, 1961, that till the salary is already within the TDS (Tax Deduction at Source) u/s 192, it is to be deducted at a 10% rate from any compensation, fees, or commissions paid to a director of the firm. When doing the above-mentioned payments totalling more than Rs 30000 in a financial year, section 194J is applicable.

A single bench of Justice Bechu Kurian Thomas opined that the appeal itself could be disposed of within the said time. The Court in identical cases has already asked such appeals to be disposed of, and there is no reason for a direction not to be issued in this case also.

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The bench asked the 2nd respondent to regard and pass precise orders on appeals towards assessment years 2017-18 and 2018-19, quickly, at any cost, within 3 months. It ruled that all coercive proceedings according to assessment orders shall be kept in suspension.