2017 (10) TMI 310

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....ents are salary so as to bring into effect of section 192 of the Income-tax Act, 1961 (hereinafter referred to as the "Act") instead of section 194J of the Act. 3. Brief facts of the case are that the assessee is a domestic company, engaged in providing health care services, operates a hospital viz., Apollo Gleneagles Hospital at Kolkata. During the course of assessment proceedings the AO noticed that 116 doctors were engaged by the assessee in its hospital in the capacity of consultants and an aggregate of Rs. 52,97,98,732/- was paid to these doctors as professional fees which was subjected to TDS u/s. 194J of the Act. Thereafter, at the time of hearing the AO asked the Ld. AR to show cause as to why assessee should not be treated as an....

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....the facts and circumstances of the case carefully. We note that the at the time of hearing, the Ld. Counsel for the assessee submitted that the issue is squarely covered in favour of the assessee by the Coordinate Bench decision in assessee's own case in ITA No.1456/Kol/2014 for AY 2011-12 dated 14.03.2017. On the other hand, the Ld. DR relied on the orders of the lower authorities. We find that the AO noticed that 116 doctors were engaged by the assessee in its hospital in the capacity of consultants and an aggregate of Rs. 52,97,98,732/- was paid to these doctors as professional fees which was subjected to TDS u/s. 194J of the Act. Thereafter, at the time of hearing the AO asked the Ld. AR to show cause as to why assessee should not be tr....

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....he consultant doctors, however, we find that the restrictions imposed is that they are not eligible to practice in any hospital other than the hospital of the assessee which clearly signifies. It is for the best business interest of the assessee and which does not in any way signifies the service patterns of these consulting doctors. That the facts on record shows that the application of the test of direct control and supervision is not absolute. These "Consulting Doctors" are generally well skilled and knowledgeable in their area of specialization and hence, attract patients on their own strength and goodwill and do not depend upon the hospitals for a continuous flow of patients. Further the Consulting Doctors are free to treat and manage ....