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2017 (8) TMI 1485 - ITAT CHANDIGARHTDS u/s 194C on the value of the by-products - nature of liability - assumption of Payment in kind - work carried out by the millers who are under contract with the procurement agency/assessee - Held that:- Exchange of goods for goods and does not involve any cash outflow. Although services were taken, it is difficult to say that the residuals and the losses left by the assessee in favour of AIL are purely consideration for the job that is done. The market fluctuations in the price structure of the raw material and the end product cannot be just ignored in the whole transaction nor the process loss. In the case in hand, whatever amount the assessee has paid as ‘milling charges’ for the paddy, the assessee has deduced the TDS thereupon. However, the assessee was not obliged to make any payment on the value of the by-product retained by the miller, therefore, in the light of the decision of the Delhi Bench of the Tribunal in Aahar Consumer Products Pvt. Ltd. [2011 (2) TMI 488 - ITAT, DELHI] provisions of section 194C of the Act as well as 201(1) / 201 (1A) of the Income- tax Act would not be applicable to the facts and circumstances of the case. The Ld. CIT(A) therefore, has rightly deleted the addition imposed by the AO on account of non / short deduct ion of tax us 201(1) / 201(1A). - Decided in favour of assessee.
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