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TMI Blog2016 (1) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... levision channels and also in the business of purchase and sale of film and music software. 3. We have heard the arguments advanced by the learned representative of the parties and gone through the record. The matter of controversy between the parties is that whether the remuneration paid to the director Mr. K. S. Kalyansundaram is liable to be taxed in view of provision contended u/s. 192(1) of the Income Tax Act, 1961( in short "the Act") or is liable to be taxed in view of the provision contended in section 194J of the Act. Learned representative of the assessee has argued that Mr. K. S. Kalyansundaram is not the permanent/regular employee of the company, however, his professional services was taken on contract, therefore, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to time. d) The professional was appointed initially for a contract period of one year which was further expendable at the option of the assessee company e) The Professional was liable to be transferred from the post engaged in any other post in any other department of the company or its subsidiary/associate companies anywhere in India or abroad f) The Professional is required to devote full time and energy in the best interest of the company and shall not, while in service of company, undertake or concern itself directly or indirectly with any other employment or activity, g) All work developed during the employment of professional shall be the exclusive property of the company and the professional shall have no right of ownershi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There is no regular increase of salary. There is no other benefits on record which was being paid to him as regular employee. No doubt, in the said circumstance when Mr. K. S. Kalyansundaram has been professionally being paid for his technical services therefore, provisions u/s. 194J would be quite applicable to his case, whereas the provision u/s 192(1) along with interest u/s. 201(1)/201(1A) are not applicable in the case of the assessee. Therefore, ground no. 1 has been decided against the Revenue. Consequently, second ground also awarded in favour of assessee and against the Revenue. 8. We are of the view that order in question is in view of the said findings not liable to be sustainable in the eyes of law therefore, the same is hereb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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