2019 (9) TMI 41

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....ing the assessee in default u/s 201(1)/ 201(1A) of the Act by the AO for non-deduction of tax at source u/s 194J on payments made to employees. 2.2 Brief facts of the case are that the assessee runs a college under the name and style of Sri Sathya Sai P.G. College for Women. During the Assessment Years under consideration, the assessee paid salary to its employees who are teaching there on which assessee deducted the tax at source u/s 192 of the Act. The AO held that the employees to whom assessee paid salary are not having any employer-employee relationship between the college teachers/lecturers/ staff. Therefore, the assessee is liable to deduct tax at source u/s 194J of the Act in place of 192 of the I.T. Act, 1961. Accordingly, the dem....

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....employer relationship between the college teachers/lecturers/staff, therefore, tax on the salary paid to them was correctly deductible u/s 192 of the Act. I also found that in order to establish employee and employer relationship between the college teachers/lecturers/staff, the assessee also produced salary registers and appointment letters before the lower authorities. The ld.AR of the assessee during the course of hearing relied on the order of the ITAT Chandigarh Bench (ITA No. 512 to 514/Chd/2014 dated 12-08-2014) in the case of ACIT (TDS) vs M/s. MCM DAV College for Women wherein the ITAT, Chandigarh Bench held as under:- ''14. We are in conformity with the findings of the CIT (Appeals) in this regard that in view of various ratio l....

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.... professional payments in line with the provisions of section 194J of the Act. The assessee is thus not in default and there is not merit in raising of demand under section 201(1) of the Act and charging of interest under section 201(1A) of the Act. The grounds of appeal raised by the Revenue are thus dismissed. 15. The facts, circumstances and issues in ITA No. 513 to 517/Chd/2014 are identical to the facts in ITA No. 512/Chd/2014 and our decision in ITA No.512/Chd/2014 shall apply mutatis mutandis to ITA Nos. 513 to 517/Chd/2014. 16. In the result, all the appeals of the Revenue are dismissed.'' Before parting with the issue, I observe that the AO has wrongly treated the salary paid to its teachers/ lecturers/staff as professional se....