A certain amount is transferred in saving a/c for site expense

One of my party in Mumbai has site in Bangalore Chennai and kolkata. And they don't separate bank account over each site in different city . So they have supervisor for each site. Where they transfer the some amount to saving account of supervisor who then utilise this amount for site expense( petty cash expense and purchase) and they also get salary in the same account 

now questions is that
Is this amount transfer in saving account would consider as his salary income???
OR this person would be considered as contractor ???
and should tds will be deducted from them??? 
what about there income tax Return for salary where the tax liability would increase where the amount they received wasn't their???