New Delhi, July 25 -- The Income Tax Appellate Tribunal (ITAT), Cochin Bench, has quashed a tax demand of Rs.9.48 lakh raised against Kerala-based Brilliant Study Centre Pvt. Ltd., ruling that contractual teachers cannot be treated as employees merely because they are required to follow attendance, working hours and leave procedures.

In its order dated 16 June 2026, the tribunal held that such administrative supervision is necessary for the smooth functioning of an organisation and does not, by itself, establish an employer-employee relationship. The original order was passed in Brilliant Study Centre Pvt. Ltd. vs Income Tax Officer (TDS), Ward TDS, Kottayam.

The dispute arose after a TDS survey conducted under Section 133A in December ...