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TMI Blog2019 (4) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... nds. The test of the extent of control and supervision of a person by the engaging agency are undoubtedly relevant factors while judging the question whether the person was an agent or an employee. However, in a situation where the person employed by one employer is either deputed to another or is sent on loan service, the question of dual control would always arise. In such circumstances, the mere test of on spot control or supervision in order to decide the correct employer may not succeed. It is inevitable that in a case as the present one, the Kuwait based company would enjoy considerable supervising powers and control over the employee as along as the employee is working for it. Neverthless, the assessee company continued to enjoy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese issues arise in the following background. Respondent is sole proprietor of one M/s Radiant Services. Said Radiant Services had entered into an agreement with one M/s Arabi Enertech of Kuwait based company on 2007 08 for providing manpower to the said company as per its requirements. Individual contract was executed for supplying the person. The Commissioner has reproduced relevant portion of the terms and conditions in this contract. As per which, the Kuwait based company paid a fixed sum out of which the assessee would remunerate the employee. The Assessing Officer was of the opinion that while making the payment to the employee the assessee failed to deduct the tax at source under Section 195 of Income Tax Act, 1961 ( the Act for sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contract itself provided that as per the contract the assessee would supply Commissioning Engineer to the said company on deputation basis for its on going project. Such deputation would be on the terms and conditions mutually discussed between the assessee and the said company. The contract envisaged payment of deputation charges which were quantified at US $ 5500 per month. Such amount would be paid to the assessee. Out of such amount the assessee would remunerate the employee. The mode of payment was also specified. The same would be released upon the assessee submitting invoices. The record suggests that the assessee after receiving the said sum from Kuwait based company would regularly pay to the employee 4000 US $ per month, retain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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