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TMI Blog2014 (8) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of payment would not get changed. In view of the teaching staff being appointed on adhoc basis, for a short period, there was no entitlement for any other benefits like PF, Gratuit y, HRA, increment, etc. Upholding the order of the CIT (Appeals), we hold that the Assessing Officer was not correct in treating the payments made to the teachers on adhoc basis as professional payments in line with the provisions of section 194J of the Act. The assessee is thus not in default and there is no merit in raising of demand under section 201(1) of the Act and charging of interest under section 201(1A) of the Act. The grounds of appeal raised by the Revenue are thus dismissed. - ITA Nos. 512 to 514/Chd/2014, ITA Nos. 515 to 517/Chd/2014 - - - Dated:- 12-8-2014 - SHRI T.R. SOOD, ACCOUNTANT MEMBER AND Ms. SUSHMA CHOWLA, JUDICIAL MEMBER For the Appellant : Shri Manjit Singh For the Respondent : Shri Amrinder Singh ORDER Per SUSHMA CHOWLA, J.M. : The bunch of six appeals filed by the Revenue are against the two separate consolidated orders of the Commissioner of Income Tax(Appeals), Chandigarh dated each 4.3.2014 agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade payments under the head teaching staff (guest facult y). Further it was noted that no tax at source was deducted by the deductor out of the said payments made to the teaching staff (guest facult y) under section 194J of the Act. The assessee was issued show cause notice which is reproduced under para 2 at pages 1 to 3 of the assessment order. The repl y of the assessee is reproduced under para 3 at pages 3 to 7 of the assessment order. The plea of the assessee before the Assessing Officer was that it had appointed adhoc teaching staff on salary basis onl y. The copy of one of the salary bill was filed before the Assessing Officer, which depicts that the salary had been paid by the college as employer to the teaching staff, who were the employees. As per the assessee, there was employer and employee relationship between the college and the teaching staff employed on contractual basis. Further the said persons ere employed to teach in the college and to follow the rfuls and regulations prevalent in the college. The assessee further clarified that the provisions of section 194C or 194J of the Act were not applicable and was not liable to deduct the tax at source as the amount pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the assessee under section 133A of the Act on 19.9.2011. The survey team noted that the assessee deductor had availed the services of various professionals for teaching self financing and other courses run by the college and the payment made to the said teaching staff who was guest faculty was liable to deduct tax at source being professional payment under section 194J of the Act. 10. On the other hand, the plea of the assessee was that it had appointed the teachers on adhoc basis for teaching the students of those professional courses and there existed the relationship of employer and employee between the assessee deductor and its teaching staff and the payments made to them in the nature of salary and not professional charges. The CIT (Appeals) vide para 5 has given following findings in this regard: 5. I have considered the facts of the case. The adhoc teaching staff (guest faculty) was mainly appointed for self financing courses. These teachers are appointed by the selection committee and the proceedings regarding their appointments are duly recorded. 11. The learned D.R. for the Revenue has failed to controvert the said finding of the CIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the meaning of the definition if they fulfil its requirement. 5.3 The existence of right of control in respect of the manner in which work is to be done is the most important factor to determine the relationship. The terms of employment were fixed by the college management in this case and they had complete control over the teachers who were engaged as teaching staff (guest faculty). There was an employer, an employee and the employment and so it cannot be said that the relationship between the college and teaching staff was anything else, other than that of employer-employee. 5.4 The payments made to the teaching staff are, in fact, in the nature of salary in view of the concept of employment duly explained by Honble Delhi High Court in the case of C.S. Mathur vs. CBDT Anr; (147 CTR 75) as under: Their Lordships quoted their own observation in Chintaman Rao v. State of M.P., AIR 1958 SC 388 and held : The concept of employment involves three ingredients : (1) employer, (2) employee, and (3) the contract of employment. The employer is one who employs, i.e., one who engages the services of other persons. The employee is one who works for a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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