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2013 (7) TMI 1 - ITAT LUCKNOWTransmission charges being part of purchase price of gas - Non deduction of TDS u/s 194C - assessee company, engaged in manufacturing of fertilizers, had purchased natural gas from GAIL same transported to the manufacturing unit of the assessee through the pipeline of GAIL for which the assessee had paid the transmission charges to GAIL - Held that:- In the instant case GAIL has not only supplied/transported the gas sold by it but also the gas purchased by the assessee from other sellers. In those cases the transmission charges paid by the assessee to GAIL certainly attracts the provisions of section 194C as per circular no. 9/2012 [F.No. 275/11/2012-IT(B)] dated 17.10.2012 of CBDT. From a careful perusal of the orders of the lower authorities, it is find that the assessee has also admitted in his written submissions filed before the CIT(A) that it has also purchased the gas from other sellers i.e. Reliance Industries Ltd. apart from the GAIL but the same was transported by the GAIL and the assessee had paid transmission charges to the GAIL and also deducted TDS on the payment but this aspect has not been clarified by any of the lower authorities as they have treated the entire payment of transmission charges as has been made u/s 194I or 194C of the Act. In the light of these facts, this aspect is required to be examined by the lower authorities as to how much transmission charges are paid by the assessee to GAIL for transportation of the gas purchased by it from GAIL and also the amount of transmission charges paid by the assessee to GAIL for transportation of gas purchased from other agencies - restore the matter to the file of AO with the direction to reexamine the issue afresh - in favour of assessee for statistical purposes.
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