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2018 (11) TMI 47 - AT - Income TaxTDS u/s 194C on by products - consideration in kind - milled / shelled paddy as retained by the millers and the same has a marketable value which, in fact, constitute as a part of the consideration paid by the assessee to the millers, whereon the assessee failed to deduct any TDS.Held that:- In the case in hand, the neither the Procurement agency becomes the owner of the by product nor there is any ascertainable value of the by-product. Even, the Procurement Agencies have neither any inclination to know the price of the by-product nor they have right to claim any amount out of the value of the by-product on the ground that its sale value has exceeded the milling charges. In this case the assessee's were not the owners of the by-products. Another factor for consideration is that the property passed ‘in kind’ should have some ascertainable and determinable value, which can be taken as part of the consideration paid for the work done. Further, it is the nature of the contract, term of the agreement, the intention of the parties and overall facts and circumstances of the case which are required to be analyzed and considered for determining whether the provisions of section 194C of the Act or other similar provisions of the Chapter would be attracted or not in a particular case. As discussed above in detail, since we have held that the property in the by-product was not passed on by the assessee / Procurement Agencies as milling charges, hence, it is held that TDS provisions of section 194C are not attracted in this case. - Decided in favour of assessee.
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