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TMI Blog2016 (1) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ular increase of salary. There is no other benefits on record which was being paid to him as regular employee. No doubt, in the said circumstance when Mr. K. S. Kalyansundaram has been professionally being paid for his technical services therefore, provisions u/s. 194J would be quite applicable to his case, whereas the provision u/s 192(1) along with interest u/s. 201(1)/201(1A) are not applicable in the case of the assessee. - Decided in favour of assessee - I.T.A. No.3594/M/14, I.T.A. No. ITA 3595/M/14 - - - Dated:- 30-11-2015 - SHRI R.C.SHARMA, AM AND SHRI AMARJIT SINGH, JM For the Appellant : Shri Sunil Nahta For the Respondent : Shri Sumit Kumar ORDER Per: Amarjit Singh: This order shall disposed of both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the permanent /regular employee of the company. 4. While, on the other hand the learned departmental representative refated the said contentions and argued that the learned CIT(A) has rightly adjudicated the matter of controversy by holding that Mr. K. S. Kalyansundaram was a regular employee and accordingly, the income was assessed in view of the 201(1)/201(1A), hence, the appeal of the assessee is liable to be dismissed. Before deciding the matter of controversy it is necessary to advert the terms conditions of the contract on record: a) Working period of the professional was fixed and in addition to such fixed period, the professional was also required to attend the company's work as and when required by the company b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to decide the nature of the said remuneration which has to be ascertained on the basis of relationship between the assessee and the professional. It is thus established that the relationship between the assessee company and the professional was purely that of employer and employee and the remuneration paid to the professional in terms of the said relationship is salary liable to be subjected to TDS uls 192 of the Act. whereas the company has deducted tax uls 194J treating the payments as professional fees. The assessee company has therefore deducted tax at source from the payment of ₹ 26,00,000/- made to the Professional short by an amount equal to the difference of rates u/s 192 u/s 194 J i.e. 26.50%. 5. No doubt, in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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