TaxTMI 
TaxTMI 
2011 (2) TMI 1186
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....rgeable under the head Salary instead of Profits and Gains of Business or Profession as claimed by the appellant. 2. On the facts and circumstances of case, the learned CIT(A) has erred in confirming disallowance of expenses amounting to Rs. 1,11,419/- incurred wholly and exclusively for the purpose of profession - viz. Conveyance Expenses Rs. 43,837/-, Staff Welfare Expenses Rs. 40,184/-, Telephone Expenses Rs. 10,959/-, Sundry Expenses Rs. 9,133/- and Printing & Stationery Expenses of Rs. 7,306/-." 2. So far as the first ground is concerned, it is a determination of head under which the fees received by the assessee is to be taxed. Whether the fees received by the assessee for teaching 'Algebra' to the students of 9th and 10....
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....either committed nor totally prescheduled. We pay them on hourly basis on mutually agreed rate between us after deducting tax deducted at source at prescribed rate, if applicable. (ii) How he was appointed as a lecturer in your Coaching Institute: Walk in Candidate (iii) Copy of appointment letter: No appointment letter issued to Mr. Hardik Bengali (iv) Subject taught by him in your Coaching Institute: Algebra for STD IX & X (v) Teaching hours per week as per appointment agreement: No agreement was signed by us with Mr. Hardik Bengali. (vi) Mode of payment to Mr. Hardik Bengali being a lecturer: A/c. Payee Cheque." 3. The A.O. was of the opinion that the assessee discharged his job as a teacher and h....
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....nt PAN and TAN numbers though thee is similarity in first name. Merely because the name is the same that cannot be the reason for concluding that M/s. Nayak Tutorials is a single entity. The Ld. Counsel also relied on the following decisions:- (i) CIT v. Mrs Durga Khote [1952] 21 ITR 22 (Bom.) (ii) CIT v. Deep Nursing Home & Children Hospital [2008] 169 Taxman 189 (Punj. & Har.) (iii) ITO v. Calcutta Medical Research Institute [2008] 75 ITD 484 (Cal.) Per contra, the Ld. D.R. relied on the orders of the authorities below. 5. Now, the first fundamental issue is the nature of the receipts in the hand of the assessee. It is claimed that the assessee is visiting lecturer to teaching Algebra to the students of M/s. N....
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....ct of the manner of the work he should do. Another important criteria is whether the employer has a supervisory control in respect of the work entrusted to the person as his employer. As an employee or a servant acts under the direct control and supervision of his master. Due to changing scenario in the society from the times, the services rendered by the person to the other may take the colour of the relationship of the master and the servant, but in fact, the relationship would be of the 'principal' and the 'contractor'. Many a times, there is a very thin line of demarcation between for determining whether it is business income or income from employment. The case of the A.O. is that fees received by the assessee is an income from employme....
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.... year no relationship of the master and servant exists between the M/s. Nayak Tutorials and the assessee and fees received by the assessee on per hourly basis for delivering lectures on the Algebra to the students of M/s. Nayak Tutorials cannot be treated as a 'salary'. It is also pertinent to note here that the assessee teaches Algebra, which requires special/personal skill and intellect and it is not a labour work. Apart from that, in my opinion, the contract, which is implied one, between the M/s. Nayak Tutorials and the assessee is a contract for service and not contract of service. I, therefore, hold that the income/fees received by the assessee is to be assessed under the head "income from business or profession". Hence, ground no. 1 ....