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TMI Blog1988 (12) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... egarded as profit in lieu of salary also. The ITO rejected these contentions on the ground that there was no employer-employee relationship between the assessee and the hospital authorities and taxed the amount as income from profession. 2. Before the AAC the same contentions were advanced. It was further contended that the definition of 'salary' under s. 17(1) was inclusive and it included profit in lieu of salary. The AAC has allowed the assessee's claim observing as follows: "The appellant gives professional advice to the patient at the 2 general hospital referred above at the instances of the hospital authorities for which he is paid monthly honorarium of Rs.300 per month. The appellant does not carry on his profession at the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed upon the following two decisions and submitted that they showed that even when a person had ceased to be an employee standard deduction was available: 1. ITO vs. Lt. Col. G.R. Chopra (1985) 45 CTR (Trib) (Del) 1 : (1985) 11 ITD 662 (Del) (SB). 2. CIT vs. Saroop Krishna (1985) 46 CTR (P H) 296 : (1985) 153 ITR 1 (P H) He has also submitted that the remuneration is called honorarium because it is too inadequate looking to the benefit given in the form of knowledge and experience. 4. The decisions relied upon by the assessee relate to pension and in the case of pension there was an employer-employee relationship between the payer and the recipient. It is because the recipient was an employee that pension was paid. It is true tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the hospital at some stated hours and he is not controlled by conditions of services governing other members of the staff. Therefore, such an employer-employee relationship is absent in his case. 5. Finally, we would like to say that it is because the payment is not to be regarded as salary, that it is called an honorarium. The whole purpose of using the word 'honorarium' is to avoid using the word 'salary'. The visiting doctor would not like to have it mentioned at all as salary. It is a matter of his honour and that is why it is called 'honorarium. When that is so, he cannot claim it as salary before the income-tax authorities. In other words, if he wants the honour he cannot claim the payment as salary. Consequently, he has to fore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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