TaxTMI 
TaxTMI 
2023 (4) TMI 982
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....A) for alleged default towards non deduction of TDS from payments made to Guest faculties with reference to Section 194J of the Income Tax Act, 1961 (the Act) concerning AY 2017-18. 2. When the matter was called for hearing, the ld. counsel submitted that there are two types of payment. One is salary paid to regular staff and another payment is made to Guest faculties recorded under the head 'Professional and Special Services' The ld. counsel further submitted that concerned persons (guest faculty) have given an undertaking that TDS was not to be deducted as their income would be below taxable limit. The ld. counsel further adverted to list of remuneration paid to Guest Faculties for the Financial Year 2016-17 as tabulated at page no.33 of....
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....rs order dated 12.08.2014 in the case of ACIT (TDS) Chandigarh vs. MCM D.A.V. College for Women and submitted that the Co-ordinate Bench of ITAT has adjudicated the identical situation in favour of the assessee. The ld. counsel thus urged for cancellation of the demand raised under Section 201(1)/201(1A) amounting to Rs.6,74,633/- on account of non deduction of TDS for a monthly remuneration paid to several Guest Faculties aggregating to Rs.24,94,090/-. 3. The ld. DR for the Revenue, on the other hand, supported the order of the CIT(A) and contended that the payment made to the professionals for obtaining their services are covered by Section 194J and therefore default has been rightly attributed to the assessee for non deduction of TDS on....
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.... dated 09.07.2019. The assessment was carried out without making any adjustment to the returned income. 6. We also note that in the identical fact situation the Coordinate Bench of Tribunal has taken note of the judgment rendered by the Hon'ble Supreme Court in Dharangadhra Chemical Works Ltd. vs. State of Saurashtra, (AIR 1957 SC 264) which held as under: "The prima facie test for the determination of relationship between master and servant is the existence of the right in the master to supervise and control the work done by the servant not only in the matter of directing what work the servant is to do but also the manner in which he shall do his work. The nature or extent of control which is requisite to establish the relationship of e....