Dismissing the appeals of the revenue the Court held that ; the Tribunal had found that the assessee only facilitated the payments by the insurer to the insured for availing of the medical facilities. The assessee did not render any professional services to the insurer or the insured and only collected the amount from the insurer and passed it on to the various hospitals which provided medical services to the insured. Accordingly no disallowances can be made . ( AY.2009-10)
CIT v. Health India TPA Services P. Ltd. (2018) 408 ITR 34 (Bom) (HC) Editorial: Decision in ACIT v. Health India TPA Services P. Ltd ( 2014) 31 ITR 407 ( Mum)( Trib) is affirmed .
S. 40(a)(ia): Amounts not deductible – Deduction at source – Fees for professional or technical services – third party administrator for insurance companies – Payment through assessee- Not liable to deduct tax at source- No disallowances can be made [ S. 194J, 260A ]