TMI Blog2023 (1) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... y the recipient in advance cannot be foreseen in advance by the assesseecompany. Moreover, TDS liability under s. 194-I is not dependent on the tax liability/entitlement toexemption of the recipient. Irrespective of the tax exemption/tax liability of the recipient the assessee has to discharge the TDS liability under s.194(1). No certificate under s. 197 of the Act is furnished by the assssee to establish that the recipient is exempted from the tax liability. Again same question came up for consideration in other decision of Karnataka High Court 2010 (2) TMI 1163 - KARNATAKA HIGH COURT where after considering the judgment in Elbit Medical Diagnostics Ltd., the Court has come to the conclusion that retainer in service are professional s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant rightly contended that in the agreement which was entered between the parties, there is no restriction of private practice whereas in case of service/appointment order, there is prohibition for grant of benefit which are required to be given under the law and are granted to the employees whereas in the case of retainership it is only an honorary or professional agreement is entered between the parties which may be analogous to the major service conditions but both the contract are different. One is contract as an employee and the other contract is service for honorary or expert service not as a employee which was entered between the parties. Therefore, question which came for our consideration is whether payment which was made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Again same question came up for consideration in other decision of Karnataka High Court where after considering the judgment in Elbit Medical Diagnostics Ltd., the Court has come to the conclusion that retainer in service are professional service and issue was answered in favour of the assessee. 17. Taking into consideration the evidence on record, only one view taken by the Tribunal is also contrary, it two views are possible, the view much which in favour of assessee is to be taken and in view thereof in the present case, the issues are answered in favour of the assessee and against the Department. 18. The appeals stand allowed. In view of the above, the present appeal is liable to be dismissed and is accordingly dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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