JUDGMENT

Dated this the 30th day of November, 2022 The petitioner is the Employees’ State Insurance Corporation, Thrissur. For assessment years 2011-12, 2012-13 and 2013-14, there was a dispute between the petitioner and the Income Tax Department regarding the provision under which Tax had to be Deducted at Source for payments made by the ESI Corporation to various hospitals for treatment of eligible members of the ESI Scheme.

2. While it was the contention of the petitioner that Tax had to be deducted at the rate of 2% under Section 194C of the Income Tax Act, 1961 , it is the case of the respondent Department that the Tax has to be deducted at the rate of 10% under Section 194J of the Act. At the instance of the petitioner ESI Corporation, the matter reached the Income Tax Appellate Tribunal and the Tribunal by Ext.P7 order issued certain directions which are extracted below:

9.4 We have duly perused the findings of the Tribunal cited supra wherein it has been observed as follows:

"22. As or the quantum of demand raised by the assessing officer under section 201 of the Act, we find some force in the contention of the assessee that it is only the element of fee for professional serv