Case Law Details
Rajendra Kumar Chowdhary Vs ITO (ITAT Lucknow)
Salary of accountant cannot be treated as professional service for managing books of two firms to invoke TDS under section 194J
First disallowance was out of salary paid to the accountant of the assessee for maintaining books of account of two proprietorship concerns. The assessee had filed confirmation from the accountant regarding the fact that the above payment was made against salary and further I find that Assessing Officer has invoked section 194J for holding that the accountant was providing professional and technical services and therefore, the assessee was required to deducts TDS. However, the application of the above section to the assessee is contrary to the facts as the accountant himself had confirmed that he was being paid as an employee. The employee need not be a full time employee and he can be a part time employee also. Simply because the accountant was writing books of account of two firms, cannot be said that he was acting as a technical person. Therefore, the provisions of section 40(a)(ia) were not applicable and therefore, the assessee was not liable to deduct TDS and therefore, this ground of the appeal is allowed.
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