TMI Blog2017 (5) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 teach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents made to FRFs and also SRFs were in the nature of scholarship and that the said amount was spent by them to meet the cost of education. 3. The Ld.CIT(A) has erred in law and on facts while holding as above ignoring the fact that engagement of teaching personals is purely of contractual nature and there is no employers employee relationship between the university and them therefore any payments made to them was liable for TDS under the provision of the I T Act. 3. The brief facts are as under:- During the assessment proceedings it was observed by the Assessing Officer that Assessee was not deducting tax on payments made to retired professors, doctors, teaching personnel s etc. On being asked to explain the discrepancy, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduct tax @ 10%.Similarly other professionals such as Doctors, Retired professors, SRFs are paid fixed remuneration. They do not posses any PF numbers and no deductions are made on this account they are also not entitled to other allowances like other regular employees. Simply paying the remuneration out of salary head does not qualify it to be defined as SALARY as per income tax act-1961. Hence, the contention of the assessee that the payments under consideration amounts to salary was not accepted by the Assessing Officer. Thus, the Assessing Officer held that the payments under consideration fall within the ambit of section 194J of the I T Act-1961 and assessee was liable for tax deduction under section 194J of the I T Act-1961, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68 ITR 31 (AAR) 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. These grounds are accordingly allowed. 4.0. Ground No. 5 protests the TDS liability on FRFs on SRFs. The Ld. A.O is seen to not have discussed this issue in the body of the impugned order specifically. However, the Ld. AR has averred as under on this point:- In respect of payment fellowship to FRS/SFR, it is submitted that the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said notification and payments made to teachers are from their salary head. Therefore, the CIT(A) rightly held that the payments made to GRFs SRFs are exempt u/s 10(16) of the Act and thus is not liable for TDS. 7. We have heard both the parties and perused the material available on record. It is pertinent to note 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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