Case Law Details
Dr. Mathew Cherian Vs ACIT (Madras High Court)
Facts of the Case:
1. There was a survey in Kovai Medical Centre and Hospital (in short KMCH or hospital) by the officials of the Income Tax Department, on 11.2021. In the course of the survey, various documents were found and seized that, according to the respondents, are incriminating as they point to the existence of an employer –employee relationship inter se the parties.
2. The documents included ‘employee confidentiality agreement’, ‘revised guidelines for practice of medicine at KMCH’ and joining reports, all of which lead the officers to suspect that the doctors were employed with the hospital and were not visiting consultants.
3. On the basis of the above documents and consequent inferences, the authorities have come to a conclusion that (i) employer-employee relationship is established (ii) petitioners are to be construed as employees and not full time/visiting consultants and (iii) the income returned by them has to be assessed under the head ‘salary’ and not ‘professional income’.
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