Case Law Details
DCIT Vs M/s. Teleradiology Solutions P. Ltd. (ITAT Bangalore)
The learned Counsel for the assessee has contended that it is a business arrangement between the assessee and the consultants/doctors. If the assessee does not pay the licence fee on behalf of the doctors, he has to compensate the doctors by making additional payment for the services. The arrangement made by the appellant and the consultant/doctors could not be examined by the AO keeping aside the business need. Therefore, the CIT(A) has rightly allowed the claim of the assessee.
Having carefully examined the order of the authorities below in the light of rival submissions, we find that it is an arrangement between the appellant and the consultant doctors with regard to remunerations and the licence fees to be paid. If the appellant takes the responsibilities of making the payment of licence fee on behalf of the Doctors and paid a lesser remuneration, this arrangement should not have been doubted by the Revenue authorities unless and until the arrangement is held to be in contravention to the provisions of law.
FULL TEXT OF THE ITAT JUDGMENT
These appeals are preferred by the Revenue against the respective orders of the CIT(A) on common grounds and for the sake of reference we extract the grounds raised in ITA No. 1867/Bang/20 17 as under:
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