Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 1063 - HC - Income TaxTDS u/s 194J or 192 - payments made to doctors who are regular employees of the hospital - whether there does not exist an employer/employee relationship between the doctors and the hospital? - Held that:- In the present case, it has been categorically recorded by the CIT(A) that the contract for service implies a contract whereby one party undertakes to render services i.e. professional or technical services whereas contract of service implies relationship of master and servant and involves an obligation to obey orders in the work to be performed and also as to its mode and manner of performance. The professional doctors are not entitled for LTC, concession in medical treatment of relatives, PF, leave encashment and retirement benefits like gratuity. They are required to follow some defined procedure to maintain uniformity in action and some administrative discipline but this does not mean that they have become employees of the hospital. Further, the department had not taxed the payments received by any of the doctors from the assessee under the head 'income from salary'. Concurring with the findings recorded by the CIT(A), it has been correctly held by the Tribunal that there does not exist employer-employee relationship between the assessee and the persons providing professional services. It has been further recorded that on consideration of the agreement in its entirety vis a vis the case law relied upon by the assessee, it is evident that it is not a case of employer-employee relationship between the assessee and the doctors. Assessing Officer was not right in concluding on the combined reading of the above stipulations that the income of the doctors was salary. ITAT was correct in treating chargeability of payments made to doctors who are regular employees of the hospital as per the provisions of Section 194J - Decided against revenue
|