Muthoot Health Care Private Limited Vs ITO (TDS) (Kerala High Court)
Kerala High Court held that recovery proceedings in the matter of applicability of TDS u/s. 192 in case of consultant doctors being employees of hospital is to be kept in abeyance pursuant to pending final disposal of appeal.
Facts- The petitioner is a Private Limited Company incorporated under the Companies Act, 1956 having a Multi – Specialty Hospital at Kozhancherry. The petitioner is an assessee under the Income Tax Act, 1961. For A.Y. 2017-2018, 2018-2019 and 2019-2020, the petitioner has been issued with assessment order to assessment orders.
In the said proceedings issued u/s. 201 of the Act, the 1st respondent took a view that consultant doctors are employees of the hospital/company and TDS has to be deducted u/s. 192.
Challenging the assessment orders, the petitioner has preferred appeals u/s. 250 of the Act. It is submitted that though the appeals were heard pursuant to series of notices, orders are not passed. In the meantime, the 1st respondent has issued order demanding the amounts. Thus, petitioner has filed the present writ petition.
Conclusion- Held that the petitioner was heard pursuant to series of notice, it is only just and proper to keep in abeyance the recovery proceedings pursuant to pending final disposal of the appeal. Accordingly, there will be a direction to the 2nd respondent to pass final orders on appeals as expeditiously as possible, at any rate, within a period of six months from the date of receipt of a copy of this Judgment. There will be a stay of further proceedings pursuant to appeals are disposed of.
