SEKAR REPORTER

Court News from Madras High Court

sekarreporter1: https://twitter.com/sekarreporter1/status/1653592443252801536?t=4AhpEC-rLbZRzWLZzBEDqg&s=08 [5/3, 08:19] sekarreporter1: [5/3, 08:14] sekarreporter1: *GLIMPSE OF A LATEST VERDICT* *Hon’ble Justice, Dr. Anita Sumanth* of the Hon’ble High Court of Madras was pleased to allow a batch of Writ Petitions in the case of *Dr. Mathew Cherian vs Assistant Commissioner of Income Tax* and set aside the order of issue of notice of re-assessment under Section 148A(d) of the Income Tax Act, 1961, holding that the relationship between a hospital on the one hand and the Professional Doctor on the other hand is not that of an employer and employee relationship and it is a relationship of equals

by ·

[5/3, 08:19] sekarreporter1: https://twitter.com/sekarreporter1/status/1653592443252801536?t=4AhpEC-rLbZRzWLZzBEDqg&s=08
[5/3, 08:19] sekarreporter1: [5/3, 08:14] sekarreporter1: *GLIMPSE OF A LATEST VERDICT*

*Hon’ble Justice, Dr. Anita Sumanth* of the Hon’ble High Court of Madras was pleased to allow a batch of Writ Petitions in the case of *Dr. Mathew Cherian vs Assistant Commissioner of Income Tax* and set aside the order of issue of notice of re-assessment under Section 148A(d) of the Income Tax Act, 1961, holding that the relationship between a hospital on the one hand and the Professional Doctor on the other hand is not that of an employer and employee relationship and it is a relationship of equals and therefore it is held that mere existence of an agreement that indicates some measure of regulation of service of Doctors cannot lead to a conclusion that they are salaried employees and therefore the remunerations received by the Consultant Doctors are not taxable as a salary. The Hon’ble High Court was pleased to observe as follows:

1) The fact that the remuneration paid to the Doctors were variable and the doctors are not entitled to any statutory benefits also pointed out the absence of employer and employee relationship. The mere presence of rules and regulations do not lead to a conclusion of contract of service. The rules and regulations are necessary to ensure that the work-place functions in a streamlined and disciplined fashion.

2) The mere existence of an agreement that indicated some measure of regulation of the service of the doctors, could not lead to a conclusion that they were salaried employees.

3) The fact that the doctors held full responsibility for their medical decisions and actions and the hospital bore no responsibility in this regard was also of paramount importance, relevant to determine the nature of the relationship as being of equals, rather than one of master-servant.

4) There are no disputed facts at play and rather, it is only the interpretation of admitted facts and conclusions arrived at by the officer, that are challenged.

5) The “information” in the possession of the Revenue does not, in the light of the settled legal position discussed above, lead to the conclusion that there has been escapement of tax.
[5/3, 08:14] sekarreporter1: 💐

You may also like...