TMI Blog2001 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel for the parties have referred to the facts in I.T.R. No. 47 of 1985. These may be briefly noticed. Dr. (Mrs.) Usha Verma was employed with the Government Medical College, Rohtak. She filed her income-tax return for the year 1980-81 and declared a total income of Rs.52,160. This included the income of Rs.32,985 received by the assessee from the pay clinic. A deduction of Rs.13,100 was claimed as deduction from Rs.32,985 on account of expenses. The Assessing Officer disallowed the deduction and held that the taxable income was Rs.65,260. Aggrieved by the order, the assessee filed an appeal. She claimed that the share of fees given to her for working in the paying clinic, viz., Rs.32,985 could not be assessed as salary. It fell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment hospitals used to examine patients at their residences. It appears that in the year 1971, the Government conveyed its decision that "the private practice in its present form should stop and that paying clinics be started in various departments where the doctors should be allowed to work and to share income from these clinics after deducting the administrative charges, etc....". Detailed instructions in this behalf were issued vide memorandum dated December 21, 1971. A copy of this memorandum is at annexure D with Income-tax Reference No. 25 of 1987. In this memorandum it was, inter alia, provided as under: 1. That paying clinics should be run in the Medical College, Rohtak, with effect from January 1, 1972. 2. The paying clini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 17 to include, inter alia, the "fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages". The Roman soldiers were paid in the form of "Sal"--Salt. The word "salary" is derived from the word "salariurm". In a nutshell it means compensation for "rendition of some sort of service". According to Corpus Juris Secundum the word "salary" is "usually applied to the reward paid to a public officer for the performance of his official duties...". It is paid "at stated intervals". Under the Income-tax Act, 1961, it is not merely defined to mean the compensation for services rendered but by providing an inclusive definition the scope of the provision has been widened. Even the pension, which is paid after the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge. By virtue of their employment with the Government, they were permitted to work in the paying clinics run in the college. Those who chose to work were given a share in the fees. The permission to work in the paying clinic, the rate of fees, the share therein was given by the Government. This share as paid by the Government to its employees would fall within the expression "fees paid in addition to the salary". The doctors got this share by virtue of their being employed in the hospital. They used the facility and infrastructure provided by the employer. Their share of fees was determined by the employer. Thus, it is in addition to their salary for the services permitted to be rendered by the employer. It would fall within the mischief of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ips of the Supreme Court in Karamchari Union v. Union of India [2000] 243 ITR 143. In this case it was clearly held that "the inclusive definition of the word 'salary' given in section 17 provides that apart from salary received by the employee, it includes... any fees... received by an employee... In common parlance, fees, commissions, perquisites or payments of profits in lieu of salary may not be considered to be salary. But by this inclusive definition, it has been provided so". These observations do not help the assessee in any manner. No other point has been raised. In view of the above the question as posed at the outset is answered in favour of the Revenue and against the assessees. In I.T.R. No. 47 of 1985, the following addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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