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| The Tax Publishers2019 TaxPub(DT) 7773 (Luck-Trib) INCOME TAX ACT, 1961
Section 194J
Simply because accountant of assessee was writing books of account of two firms, it could not be said that he was acting as a technical person, so as to invoke provision of section 40(a)(ia).
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Tax deduction at source - Under section 194J - Accountant managing books of two firms, whether a professional -
AO disallowed salary paid to employee to maintain books of assessee due to non-compliance of provisions of TDS under section 194J. Case of assessee was that expenditure was incurred in respect of his salary and no technical service was rendered. Held: AO had invoked section 194J alleging that accountant was providing professional and technical services and therefore, assessee was required to deducts TDS. However, application of above section to assessee was contrary to facts as accountant himself had confirmed that he was being paid as an employee. Employee need not be a full, time employee and he can be a part-time employee also. Simply because accountant was writing books of account of two firms, it could not be said that he was acting as a technical person. Therefore, provisions of section 40(a)(ia) were not applicable and assessee was not liable to deduct any tax.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 37(1)
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