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2017 (5) TMI 1044 - AT - Income TaxTDS u/s 194J - payments made to retired professors, doctors, teaching personnel’s etc. - whether the contractual teaching personnel are not covered under the definition of “profession” for the purpose of Section 194J ? - existence of employers employee relationship - CIT(A) held that the payments made to GRFs & SRFs are exempt u/s 10(16) - Held that:- As per Notification no. 88/2008 dated 21.08.2008 the professions notified are: sports persons, umpires and referees, coaches and trainers, team physicians and physiotherapists, event managers, commentators, anchors and sports columnists. Thus, the finding of the CIT(A) is just and proper that the scope of this section includes specified personnel or services and leaves very little scope for reading in between the lines to include professions, such as teaching, at will. Secondly, in the case of the assessee University the payments to such teachers are made from their salary head and the appointments religiously follow the State’s policy on reservation, etc. Also the university exercises significant control over the teachers almost at par with regular employees. See case of Max Muller Bhawan, New Delhi (2004 (5) TMI 61 - AUTHORITY FOR ADVANCE RULINGS) wherein it has been ruled that such engagements are covered u/s 192 for the purposes of TDS. Also the relationship between the teachers so employed and the employer is seen to have the rigidity of “contract of employment” and not the flexibility seen in “contracts for employment.” Thus it is held that the University’s liability for TDS is u/s 192 of the Act and not 194J of the Act. The CIT(A) has rightly arrived at the conclusion and allowed the appeal of the assessee.
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