Case Law Details
CIT Vs Asian Heart Institute and Research Centre Pvt. Ltd. (Bombay High Court)
In the present case, it has been recorded that the doctors were entitled to admit, investigate and provide treatment to the patients and that the doctors would be responsible for their clinical care. The doctors were responsible for supervising the sub-ordinate staff whereas the facilities of the hospital staff, paramedical and nursing staff would be provided by the hospital along with the necessary equipment to render services to the patients. 15% of the fee collected by the doctors would be deducted by the hospital as its share and the balance 85% would be paid to the doctors after deduction of tax at source. In case of fees not being paid by patients, the same would be the liability of the concerned doctors. It was on this basis the Tribunal had come to the conclusion that the relationship between the hospital and the doctors cannot be treated as one of the employer employee relationship. It was noted that the earnings of the doctors would be dependent upon the patients that the doctors would attract.
We do not find that the Tribunal has committee any error. Significant features of the contractual relationship between the doctors and the hospital in the present case were that the hospital would provide support service where a particular patient would be treated by a doctor. The sharing was in the proportion of 15% v/s. 85% between the hospital and the doctors. Contractual tenure of these doctors was for a period of one year which would be renewable depending on the performance of the doctor to be assessed by the Medical Advisory Council of the hospital. These doctors are not entitled to benefits of leave encashment, gratuity, provident fund, superannuation benefits etc. which regular employees of the hospital are. These doctors would on their own obtain indemnity insurance. These are clear indications that the relationship was not one of employer employee. The Tribunal has correctly applied the decision of this Court in the case of Grant Medical Foundation’s case (supra) wherein the Court has laid down the propositions and principles to be applied while testing such a bilateral relationship between the hospital and the doctors.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. All these Appeals arise in common background, we may therefore record the facts from Income Tax Appeal No. 1294 of 2016.
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We have diagnostics .we are paying commission for referral doctors .Is it attract TDS or Not