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TMI Blog2019 (10) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed the appeal filed by the assessee and directed the Tribunal to consider the issue on merits. Accordingly, this appeal was heard on merits by the Tribunal on 10.10.2019. This appeal is against the order of CIT dated 24.03.2009 passed u/s 263 of the I.T.Act. The relevant assessment year is 2004-2005. 2. Brief facts of the case are as follows: The assessee is a Professor in the Department of Neuro Science at Sri Ramachandra Medical College and Research Institute, Chennai. Sri Ramachandra Medical College and Research Institute is a deemed university run by Sri Ramachandra Educational and Health Trust. The assessee attained superannuation with effect from 28.02.2002. The assessee was reappointed by Trust with fixed salary with no inci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence the entire income of the assessee was to be treated as salary income. He accordingly directed the assessing authority to redo the assessment after disallowing the expenses of Rs. 8,94,487 claimed out of professional income and allowing standard deduction eligible under the head income from salary. 4. Aggrieved by the order of the CIT passed u/s 263 of the I.T.Act, the assessee has preferred this appeal before the Tribunal raising following grounds:- A. Annexure F order of the Commissioner of Income Tax is opposed to the law, facts and circumstances of the case. The order, if allowed to stand, would occasion a travesty of justice and cause irreparable loss and hardship to the appellant. B. The Commissioner ought to have found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him by the Institute and not the Hospital. D. The Commissioner ought to have found that it is not the status of the assessee but the nature of the income earned that determines the head of taxation for the purposes of the IT Act. The provisions of the Act clearly contemplate situations where an individual can earn income under different heads and hence, merely because the appellant was earning some portion of his income as "salary" it did not follow that he could not earn income under the head "Professional income" from the same source. As long as the professional income was not traceable to the obligations of the assessee under the employment contract, the income received for professional sources could only have been classified under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , at a time when he was also working as a professor with the institute. The assumption of the lower authorities is that a person can work only on one capacity, which reasoning do not have any backing of law. (iii) For the purposes of taxation, it is the nature of receipts that counts for classification of heads of income. The income received from teaching and income earned through rendition of professional service are receipts of different nature, 'and therefore, rightly classified under the head "salary" and "professional income" respectively. (iv) The duty hours of the appellant and number of patients for consultation was left to the discretion of the appellant. He was not entitled to any employee benefits, unlike in the case of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ullapudi Cardiac Centre (MANU/IH/0397/2014). 6. The learned Departmental Representative strongly supported the order passed by the CIT u/s 263 of the I.T.Act. 7. We have heard the rival submissions and perused the material on record. The assessee was working as Professor and Head of the Department of Neuro-Survery, Sri Ramachandra Medical College and Research Institute, Chennai (deemed university). He was a Director of Neuro-Care Centre of Sri Ramachandra Educational and Health Trust. He retired from service on attaining the age of superannuation on 26.02.2002. On the same day, he was reappointed on a temporary basis on a consolidate salary of Rs. 20,000 per month plus Rs. 3,000 as reimbursement for fuel and maintenance expense (the offer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the assessee were collected by the hospital, which in turn paid over the same to the assessee after deducting there from charges due to the hospital for any service availed and the applicable TDS for professional charges was also deducted. As mentioned earlier, the provisions of the I.T.Act clearly contemplate a situation where the individual can earn income under the different heads and hence merely because the assessee was earning some portion of his income as `salary', it did not follow that he could not earn income under the head `professional income'. As long as the professional income was not traceable to the obligations of the assessee under the employment contract, the income received for professional sources could only have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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