Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1182 - AT - Income TaxPenalty u/s 271C - Payment to Doctors - Employer / Employee relationship or not - failure to deduct tax at source u/s 192 of the Act when making payments during the relevant year to the consultant doctors as against u/sn 194J - HELD THAT:- Assessee placed before us Form 26A issued by accountant of assessee, in respect of payment made by assessee to these alleged nine doctors. As additional evidence in respect of these nine doctors which in our considered opinion, deserves to be admitted and requires due verification also. We therefore admit additional evidences filed by Ld.AR at this stage. In our opinion, Ld.AO will have to verify all these details to ascertain true facts. We direct Ld.AO to call for all necessary information/details in respect of these nine doctors, the letter of appointment issued by assessee and returns filed by these doctors. AO that in the event, it is found that these doctors were providing professional services to assessee which satisfies requirement of a visiting doctor, undoubtedly, it cannot be held that relationship between assessee and the concerned doctors were that of employee-employer and no demand could be raised under section 201(1) and 201(1A) of the Act. On the contrary, if there exist employee-employer relationship, the benefit may be granted to assessee upon verifying the additional evidence filed, which we have already admitted in preceding paras. Set aside appeals challenging demand raised under section 201(1) and 201(1A) of the Act, back to Ld.AO for de novo assessment. As we have set aside additions back to Ld.AO for verification on de novo basis, penalty levied under section 271C will not survive. However, the AO is at liberty to initiate penalty proceedings u/s 271C of the IT Act, 1961 in the set aside proceedings, if desired so.
|