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2012 (10) TMI 91 - AT - Income TaxSalary income vs Business Income – assessee, being Doctor receiving regular fixed receipt from Hospital – Revenue contended that fixed amount p.m. amounts to salary only and various clauses of agreement establish that there is master – servant relationship, particularly placing reliance on clauses of agreement relating to reimbursement of traveling expenses – Held that:- It is observed from agreement of retainership and nature and extent of duties performed by the assessee that there is a very thin difference between holding assessee as employee or as professional All requirements for holding the assessee an employee does not exist as per the agreement for retainership. Generally and practically employments are always for a long period than one year which is not in the present case which is only for one year. Secondly, employment contracts generally carries various other benefits like bonus, gratuity, HRA, Medical allowance etc. whereas in the present case only lump sum payment per month was fixed for the period of retainership. Moreover, the benefit of consistency cannot be denied to the assessee. The assessee had worked as Honorary consultant at various other Hospitals in earlier years and his income was taxed as professional income. Therefore, assessee cannot be said to be an employee and his income can only be taxed under the head income from business and profession – Decided in favor of assessee.
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