2020 (12) TMI 342

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....of appeal for all assessment years, therefore, for the sake of brevity, grounds of appeal filed for the assessment year 2012-13 are reproduced as under:- "A. When it is an admitted fact that all the outpatient consultation amounts are charged by Apollo Hospitals and are paid from the account of the Apollo Hospitals to the Assessee after deducting TDS. the Assessing Officer without giving credit to the said amount disclosed in making a separate addition for the very same consultations. B. The addition and the related tax thereto, results in complete double taxation. C. At any rate the Assessing Officer has not made any addition in the income of the Apollo Hospitals, proportionate to the addition of 15% retained by the Apollo Hospitals, for the in-patients as per the agreement dated 1st April, 2013. D. With regard to the medical profession carried out by the Assesse in Apollo Hospitals, which resulted in the subject matter of addition, since the Assessee did not collect any amount directly from the patients nor issued any receipts and Apollo Hospitals having only received the said amount maintained the said accounts as the Authorized Representative....

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....spitals including that of the Apollo Hospital. The assessee had entered into contract with M/s. Apollo Hospital for sharing professional income from out patients as per which clause 2 of the said agreement states that any consideration of services provided by the consultant to the patients, the Apollo Hospital may charge professional fees to the patients and after retaining 15% of the fees collected balance amount shall be paid to the assessee. For the impugned assessment year, the assessee filed return of income declaring total income at Rs. 9,33,410/-. In the return filed for the assessment year 2012-13, the assessee disclosed receipt from Apollo Hospital at Rs. 12,26,134/- which he received in his bank account after deducting TDS u/s.194J of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). The case has been subsequently reopened u/s.147 of the Act, on the basis of information received from Principal CIT, Central Circle, Chennai, as per which the assessee has received professional income from Apollo Hospital in cash and the same has not been disclosed in his return of income. Accordingly, notice u/s.148 dated 13.03.2019 was issued. In response to the notice, the a....

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....r the assessee submitted that the learned CIT(A) failed to appreciate the facts that the assessee has received the amount from Apollo Hospital group, Chennai, in accordance with the agreement between the parties and as per the said agreement the Apollo Hospital group has paid 85% of fees collected from out patients through cheque after deducting TDS and the said payments have been recorded in form 26AS. The learned AR further submitted that the assessee has included the amount received from Apollo Hospital in his return of income and paid necessary taxes and further addition towards the said amount on ad-hoc basis based on information received from Principal CIT., Central Circle, Chennai amounts to double taxation of same income. The learned AR further submitted that the assessee never collected any amount from patients and all amounts have been collected by Apollo Hospital and necessary records required to be maintained as per rule 6F(2) has been maintained by Apollo Hospital, which has not been disputed. Therefore, in such circumstances making addition towards same income twice for not producing the required records under Rule 6F amounts to double taxation, which is incorrect. ....

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....essment years for which the assessee has filed necessary agreement between the parties, bank statements and form 26AS. The assessee further claimed that as per agreement between the parties, the principal, M/s.Apollo Hospital group, Chennai has maintained necessary records required to be maintained under rule 6F of I.T Rules, 1962 containing particulars of patients and amount charged and said amount has been directly collected by Apollo Hospital group, Chennai from patients. We have gone through the paper book filed by the assessee and find that the assessee has entered into agreement with Apollo Hospital group, Chennai and as per which Apollo Hospital group directly collects consultancy charges from outpatients and after deducting 15% of the fees collected from patients, the balance amount has been paid to the assessee . Further, the said payment has been made through banking channel after deducting applicable TDS under section 194J of the Act. We further noted that the assessee has included the amount received from Apollo Hospital group, Chennai in his return of income for the impugned assessment year and also claimed TDS deducted by the Principal in his return of income. All the....