S. 192 : Deduction at source-Salary-Consultant doctors-No employer-employee relationship-TDS deductible u/s 194J-Income from business or profession-No substantial question of law-Contract- Annual Maintenance Contracts (AMCs)-Whether technical services- Matter remanded to the Tribunal to verify the contract. [S. 133A, 194C, 194J, 201(1), 201(1A), 260A]
On appeal by the revenue the Court held that where consultant/honorary doctors engaged by the assessee-hospital were free to practice elsewhere, did not receive fixed monthly remuneration, were not covered by PF/ESIC, nor bound by service rules or fixed timings, the relationship was not of employer-employee. Their remuneration was assessable as “professional fees” and not “salary”. Accordingly, tax was rightly deducted under section 194J and not u/s 192. The doctors themselves declared the receipts under the head “Income from business or profession”. Following CIT (TDS) v. Grant Medical Foundation (2015) 375 ITR 49 (Bom.),(HC) it was held that no substantial question of law arises. As regards the annual maintenance contract the matter is remanded to the ITAT for fresh adjudication on whether payments fell under s.194C or s.194J.)(ITXA Nos. 2166, 2448, 2451, 2612, 2758 of 2018 & ITXA No. 605 of 2020, dt. 15-9-2025. (AY. 2007-08 to 2012-13)
CIT (TDS)-1 v. Dr. Balabhai Nanavati Hospital (Bom)(HC) www.itatonline.org .
[Coram : Hon’ble Shri Justice B. P. Colabawalla,
Hon’ble Shri Justice Firdosh Phiroze Pooniwalla]