TaxTMI 
TaxTMI 
2017 (5) TMI 1044
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....al teaching personnel are not covered under the definition of "profession" for the purpose of Section 194J of the I T Act ignoring the facts of the case as also the fact that such teaching personnel were highly skilled persons having specialization in their particular field and hence clearly covered under the definition of "profession" for the purpose of Section 194J. 2. The Ld.CIT(A) has erred in law and on facts in holding that payments to FRFs and SRFs is exempt u/s 10(16) of the I T Act ignoring the facts of the case as also the fact that the assessee has failed to establish before the A.O that the payments 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 educ....
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....rs are also paid at approved rates out of salary head. Teaching personnel and research assistants are paid as per the prescribed rates of ICAR out of respective fund. The Assessing Officer held that these payment did not fall within the ambit of the word Salary and also did not qualify as wages because it is not manual labour. The Assessing Officer further observed that work they required to perform, qualification for the work required clearly establishes it to be professional services. Hence, the Assessing Officer held that these payments fall within the ambit of Section 194J and assessee is required to deduct tax @ 10%.Similarly other professionals such as Doctors, Retired professors, SRFs are paid fixed remuneration. They do not posses a....
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....sts. Thus, it is clear 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 this Appellant 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. These facts also bring this case somewhat near to the case of Max Muller Bhawan, New Delhi reported in 268 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 ....
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.... that the teaching professionals are kept on contractual basis and payment is made on the basis of lectures delivered with a certain limit, this payment certainly does not fall within the ambit of the word salary. Therefore, the payments under consideration falls within the ambit of 194J of the Act. Hence, the Assessing Officer has rightly declared the said amount in default u/s 201 of the Income Tax Act. 6. The Ld. AR submitted that the CIT(A) has given a categorical finding that as per CBDT Notification No. 88/08 dated 21/8/2008, the professionals such as teaching comes under the purview of said notification and payments made to teachers are from their salary head. Therefore, the CIT(A) rightly held that the payments made to GRFs & SRF....