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TMI Blog2017 (10) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... tients on their own strength and goodwill and do not depend upon the hospitals for a continuous flow of patients. Further the Consulting Doctors are free to treat and manage their patients as they feel fit and in the course of the treatment, the Consulting Doctors use the infrastructure of the hospital to which they are attached. In return for being permitted to use the infrastructure of the hospital, the Consulting Doctors pay a certain percentage of their fees towards costs. The fee to be charged to the patient is determined after mutual consultation understanding between Hospital and Doctor. However, for the administrative, commercial and accounting ease, the hospital collects the fees from the patients and remits the same to the Consult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 194J of the Act. 3. Brief facts of the case are that the assessee is a domestic company, engaged in providing health care services, operates a hospital viz., Apollo Gleneagles Hospital at Kolkata. During the course of assessment proceedings the AO noticed that 116 doctors were engaged by the assessee in its hospital in the capacity of consultants and an aggregate of ₹ 52,97,98,732/- was paid to these doctors as professional fees which was subjected to TDS u/s. 194J of the Act. Thereafter, at the time of hearing the AO asked the Ld. AR to show cause as to why assessee should not be treated as an assessee in default for short deduction of tax as the doctors were on the payroll of the hospital as salaried employees and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the issue is squarely covered in favour of the assessee by the Coordinate Bench decision in assessee s own case in ITA No.1456/Kol/2014 for AY 2011-12 dated 14.03.2017. On the other hand, the Ld. DR relied on the orders of the lower authorities. We find that the AO noticed that 116 doctors were engaged by the assessee in its hospital in the capacity of consultants and an aggregate of ₹ 52,97,98,732/- was paid to these doctors as professional fees which was subjected to TDS u/s. 194J of the Act. Thereafter, at the time of hearing the AO asked the Ld. AR to show cause as to why assessee should not be treated as an assessee in default for short deduction of tax as, according to him, the doctors were on the payroll of the hospita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r than the hospital of the assessee which clearly signifies. It is for the best business interest of the assessee and which does not in any way signifies the service patterns of these consulting doctors. That the facts on record shows that the application of the test of direct control and supervision is not absolute. These Consulting Doctors are generally well skilled and knowledgeable in their area of specialization and hence, attract patients on their own strength and goodwill and do not depend upon the hospitals for a continuous flow of patients. Further the Consulting Doctors are free to treat and manage their patients as they feel fit and in the course of the treatment, the Consulting Doctors use the infrastructure of the hospital to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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