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2016 (10) TMI 432 - AT - Income TaxTDS u/s 192 or 194J - condition of engagement of doctors vis-a-vis the employee-employer relationship - professional activities - nature of payment - Held that:- Neither the AO nor the ld CIT (A) gave their finding that any of the condition contained in the contract of the Doctors mandate that there was employee-employer relationship between the assessee and them, which specifically may brings the doctors in the category of employee. The AO and the CIT(A) has not bring on record, if the doctors are subject to the payment of Provident Fund or other retiremental benefit, the AO has applied his own notion for arriving at the conclusion that there is employee-employer relationship and concluded that their existing relationship of employee-employer. We respectfully following the decision of jurisdictional High Court in case of Grant Medical Foundation (2015 (2) TMI 457 - BOMBAY HIGH COURT) held that Doctors have no relationship of employee-employer with the assessee’s Hospital. The doctors are in fact independent professional who may be receiving fixed remuneration despite fixed hours of works which may substantially regulating their application for leave and other discipline. With these observations, we hold that the doctors are discharging only professional services and the assessee is not liable to deduct tax u/s 192 of the Act. Thus, the appeal of assessee is allowed.
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