Case Law Details
ACIT Vs Escort heart Institute and Research Centre Ltd (ITAT Delhi)
The appellant during the period under consideration was engaged in the business of providing healthcare services in various fields namely diabetic, renal and ophthalmology. For running its operations, the appellant had engaged doctors in three categories i.e. on-roll, retainers and consultants. The last two categories consisted of independent professionals who rendered services to the appellant, governed by their respective contracts/agreements and payments to them were made after deducting tax at source u/s 194J. The doctors in the first category i.e. on-roll were paid salary after TDS as applicable u/s 192 of the Act.
After verification , the AO held that in so far as the doctors under the categories of consultants/retainers were concerned, there existed an employer- employee relationship and provisions of Section 192 were attracted and of those of Section 194J. The AO passed an order u/s 201(1)/201(1A) of the Act raising a demand of Rs.79,36,269/- which comprised of the shortfall towards TDS and interest thereon.
Chandigarh Bench of the ITAT in one of the group cases namely ACIT vs M/s. Fortis Healthcare Ltd. Mohali reported in (2016) 157 ITD 746, after a detailed analysis of the terms of the agreements of the retainer doctors as well as the salaried doctors and considering the decisions of various Benches of the ITAT and the judgement of the jurisdictional High Court in the case of Ivy Health Life Sciences (P) Ltd. held that the provisions of Section 194J applied to the retainer doctors and not those of Section 192.
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