TaxTMI 
TaxTMI 
2019 (9) TMI 915
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....f receipts with prohibited persons on lump sum or percentage basis?" 2. The assessee is a charitable trust registered since 21.11.1977 and is running medical institution (hospital) and also in the imparting of education. The assesses trust besides have registered u/s 12AA of the Act was also approved u/s 10(23C)(via) of the Act. The assessee trust is running the hospital in the name of BIMR Hospital and BIMR Heart Centre. The assessee had filed return of income declaring the NIL income for the AY 2012-13. However, the assessment was completed by the AO by assessing the income of the assessee to the tune of Rs. 7,34,12,020/- by not allowing the exemption u/s 10(23C) (viia) viz-a-viz Section 11 of the Income Tax Act, 1961. 3. The AO records in the assessment order that the payments were made to the prohibit person u/s 13(3) of the Act at unreasonable rate.At Page 5 of the AO mentioned as under: S.No. Name Qualification Designation Relation Amount Paid 1. Dr. Ravi Shankar Dalmia M.D. (Medicine) Gold Medal 1st D.M. Cardiology Director BIMR Heart Centre Son of Shri B.D. Dalmia President/ Executive Trustee Salary....
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....y the AO that for the purposes of putting Rs. 54.00 lakh salary and professional charges to the Dr. Ravi Shakar Dalmia he should have brought work of about Rs. 2.00 crore to the Hospital. This information collected by the AO and was put across to the assessee and the assessee had filed the reply to AO after receiving this information. However, the AO was not convinced with the reply given by the assessee and had therefore, disallowed the benefit arising to the assessee u/s 11 of the Act. As the AO come to the conclusion that the salary/visiting fees paid to the Doctors were excessive and unreasonable having regard to the market rate and thus, the AO has forfeited exemption u/s 11 of the Act and computed the income at Rs. 7,34,12,020/-. 7. Feeling aggrieved by the order passed by the AO, the assessee filed an appeal before the CIT(A). The CIT(A) has examined the reasoning given by the AO and recorded the finding in Para 5.1.1 and 5.2.1 as under: "5.1.1 Decision: I have carefully considered the submissions put forward alongwith the judgments of the cases relied upon & argument advanced on behalf of the appellant, perused the facts of the case and other material available ....
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....tion paid by the appellant to Dr. RavishankarDaimia is reasonable. . Section 13(2) provides the exception in which payment can be made to the person covered under section 13(3) of the Act. Sub-section (c) of section 13(2) provides that if the person covered under section 13(3) is paid remuneration for services rendered by him at reasonable rate then the provision of section 13(3) will not apply. In the present case I am of the view that the remuneration paid to Dr. Ravi Shankar Dalmia who is full time looking after the Cardiac Center of the appellant and is attending emergencies and is not doing any private practice is reasonable and accordingly the benefit of section 11 cannot be denied to appellant for paying remuneration of Rs. 54,00,000/- to Dr. Ravi Shankar Dalmia. (iii) Payment to Dr Sunil Agrawal Orthopedic- Theappellant is making payment to Doctors on the basis of fees collected by the appellant on surgery done by them. In the case of Dr. Abhishek Bohre the appellant has paid nearly 41.3% of fees collected on work done by him as his remuneration. Similarly in the case of Dr. Sunil Shrivastav the appellanthas paid as remuneration nearly 40% of fees....
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....unil Dalmia - Shri Sunil Dalmia is looking after general administration of hospital and educational institutions run by the appellant. As per the Id AR the remuneration was paid to him in earlier assessment years also and in order passed under section 143(3) these payment has been accepted as reasonable. Since the payment made to Shri Sunil Dalmia in earlier year has been accepted as reasonable hence in view of principle of consistency I am of the view that the benefit of exemption under section 11 cannot be denied to the appellant on account of payment of remuneration to Shri Sunil Dalmia. 5.2.1 Decision: After carefully considering the argument advanced on behalf of the appellant and perusing the facts of the case and other material available on record , this issue is decided as under:- As stated by the AO the appellant has not claimed exemption under section 10(23C)(via) of the Act and during the appellate proceeding no specific submission in support of this ground has been advanced hence this ground is dismissed as not pressed." 8. The Revenue feeling aggrieved by the decision filed the appeal before us on the above said ground. 9. The ld. CIT D....
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....f Shri S.K. Agrawal Trustee C-Arm Machine 5. Sunil Dalmia B.COM Sr. Executive (Commercial) Nephew of Shri B.D. Dalmia President/executive Director Salary Rs. 4,56,000/- 10. It was further submitted by AR that in all the previous assessment year the case of the assessee wasexamined and the payment made by the assessee to the Doctors have been accepted by the AO. Our attention was also drawn to the assessment order based for the A.Y. 2010-11 where the similar payment of Rs. 36.15 lakh was allowed by the revenue collected for an amount of Rs. 2,39,60,000/-. It was submitted that the present appeal filed by the Revenue without any basis and the ld. AR relied upon the following judgment: 1. CIT(Exemption vs. Bhola Ram Educational Society , (SC) 2019 ITL 59 2. Pratap WahiniSamaj Kalyan vs. Dept. of Income Tax, ITA No. 301/Agra/2012 3. Pratap WahiniSamaj Kalyan vs. Dept. of Income Tax, ITA No. 242/Agra/2011 4. PNR Society for Society for Relief & Rehabilitation of the Disabled Trust vs. The DDIT (Exemption), ITA No.2729/Ahd/2010 5. Indicula Trust Society vs. CIT (Exemption) ITA No.1216/Del/2013 ....
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....ld form the part of the medical fees. VIII. The kickbacks are given by the consultants, pathologist's, laboratories, nursing home, general practitioner and others. IX. The medical practitioner also gets lot of unethical fees from the medicine companies in the form of parties, air tickets and conferences. X. Un-ethical situation of medical profession further aggravatesif it is learned that patient bill taken care of the medical insurance or by employer of the patient and bills of patient. The patient connivance and conclusion with the doctors, inflate the bills and share the bill on the inflated amount. 12. In our view, the fees of the doctor is not only determined by the college from which he had passed out but also dependent upon a. with whom Dr. has done the internship b. his seniority c. competence d. Expertise e. qualification and f. Ability to give results in complicated and difficult cases g. Further, the fees is also determined based on the establishment and equipment on which the doctors is working h. The time involved in the procedure/surgery i. locality where the....
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....m the fact that from 2007 he was working with escort hospital Delhi and thereafter working with the assessee hospital with effect from F.Y. 2009-10. The contribution of doctor is clear from the fact that revenue collected from the A.Y. 2009-10 was 183.26 lakh whereas the revenue collected from the F.Y. 2011-12 was 337.14. The revenue has increased two times in from 2009-10 to 2011-12 and same with the same ration it increased for Dr. Ravi Shankar Dalmia. 12.6 Further we are of the opinion that the finding recorded by the AO based on the comparable instances is wholly incorrect. In our view, the comparable instances brought on by the AO are not at all comparable as the services rendered by the professional like Dr. Ravi Shankar Dalmia cannot be compared with the other DM (Cardiologists) or assistant professional or professor in some medical college or working in other hospital. It is expected from the AO to bring on record the comparable only after bringing on record the comparison between two doctors not only on the basis of the medical degree but also on the basis of expertise etc as mentioned hereinabove. 12.7 In view of above and we also on account of comparable instance o....
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....of Angiography , Angioplasty, and Permanent Pacemaker Implantation. In association with Escort Heart Institute & Research Centre, New Delhi started Bypass Surgery & Valve Replacement in Gwalior in the year 2009. More than 325 cases have been done till date. Awarded with -: . • "Doctor of the year" in 2009. "Gwalior Ratna" in 2009. - Top Young personality at national level. Chairperson at various nation & international conferences BIMR Heart Center with following facilities â–¸ Cath Lab:- Equipped with German equipments for Angiography, Angioplasty, Pacemaker Implantation and devices including AICD and Cardiac Resynchronization Theraphy. Cardiac Surgery:- Coronary Bypass Surgery, Single Valve replacement, Double Valve replacement. आयकर आयà¥à¤•à¥à¤¤ (28) રાયજ * à¤à¥‹à¤ªà¤¾à¤² Document 2 52 Facilities Available: OPD Speciality 1. Executive Cardiac Checkup. 2. Complete Cardiac Checkup. 3. Pacemaker Clinic. 4. Hypertension Clinic. 5. Pacemaker Interogation. 6. Post Angioplasty Rehabilitation....