02 June 2010
though I agree with your contention that stipend is differen from salary but still I think there is no employer employee relationship between pricipal and trainee
02 June 2010
Dear Sir The case law referred is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench.
Orders of the ITAT have no validity in the income tax laws and on the department. Further in the same case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).
@ Aditya: Thanks for the form.. even i was not knowing it.. but i saw that Article is not treated as employee in the same form. SO i think it wil be under IOS only.
CAclubindia
