TMI Blog2011 (7) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has not deducted the tax, the amounts claimed of Rs. 26,75,535/- was to be disallowed under section 40(a)(ia) - Assessee has employed about 18 consultants with whom it entered into agreements for a period of two years renewable further at the option of either parties and they were paid fixed amounts without any share in the profit - It is also not the case that assessee has not deducted any a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in the nature of fees for professional services and accordingly provisions of section 194J would attract. It was the contention of the assessee that the consultants functioned as employees of the firm and were engaged on full time basis. They could not undertake any other job or assignments privately and they were provided with annual leave and other benefits except bonus, gratuity and P.F. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appellant. The deduction of tax made by appellant though made u/s. 192 has not been disputed by AO, neither has the TDS deposit in Government account been challenged, nor has the genuineness of payment of monies to IHC been doubted by AO. As such, the payments become allowable expense under the Act. These have been disallowed due to an interpretation of the section under which the payment made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 consultants with whom it entered into agreements for a period of two years renewable further at the option of either parties and they were paid fixed amounts without any share in the profit. These consultants are prohibited from taking any private assignments and worked full time with the assessee firm. There is no dispute with reference to the deduction of tax under section 192 and also the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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