TMI Blog2013 (12) TMI 1317X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in proceedings, the assessing officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the abovesaid five assessment years. The notices both under Section 194C, where the objections are yet to be decided, and the notices under Section 148 of the Act - All the writ petitions are thus premature - No prejudice has been caused to the petitioners at this stage nor any demands have been created, to interfere and to decide factual issues, calling for interpretation of the conditions of contract and verification of payment - All the writ petitions dismissed on the ground of alternative remedy. - Decided against petitioner. - Writ Tax Nos.503 of 2012; 519 of 2012; 520 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Explanation III to Section 194 C of the Act, and on royalty as per the provisions under Section 194J, failing which the expenditure, on which TDS had to be deducted, but was not deducted may be added back under Section 40 (a) (ia) of the Act in the income of the noticees. In the notice under Section 147/148 of the Act the Asstt. Commissioner of Income Tax has stated that from the perusal of the records and general billing pattern of GAIL, nearly 40% of the total billing amount comprises of such expenditure, on which TDS is to be deducted u/s 194C or under Section 194J and which was not deducted, and thus he has reason to believe that 40% of such amount has escaped assessment as per Explanation (2) (b) of Section 147 of the Act under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed (GAIL) and the petitioner. He submits that under the agreement there is no contract between the GAIL and the petitioner for carriage of goods. The transportation of gas by GAIL is only for furtherance to the contract of sale of gas. The transportation does not attract the deduction of tax under Section 194-C or Section 194-J of the Act. The GAIL has verified by way of a certificate dated 21.1.2012 that it has filed Income Tax Returns for 2008-09 and 2009-10 on taxable income which includes transportation charges charged from the customers of Agra and Firozabad region, and that in Commissioner of Income Tax (TDS) v. Krishak Bharati Cooperative Limited a case decided by the High Court of Gujarat at Ahmedabad, it was held that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties. 2. Leave is granted. 3. By the order under challenge, a Division Bench of the High Court at Delhi dismissed the writ petition filed by the appellant challenging the validity of notices issued under Sections 148 and 143(2) of the Income Tax Act, 1961. The High Court took the view that the appellant could have taken all the objections in its reply to the notices and that, at that stage, the writ petition was premature. Accordingly , the writ petition was dismissed on 31st January, 2001. Aggrieved by that order, the appellant is in appeal before us. 4. Mr. M.L. Verma, learned senior counsel appearing for the appellant, submits that the impugned notices relate to seven assessment years; that during the pendency of these appeals, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, and thus we find that all the writ petitions are premature. Shri Ravi Kant submits that the GAIL has verified that it has paid tax on transportation charges. He submits that in Commissioner of Income Tax (TDS) v. Krishak Bharati Cooperative Ltd., a case decided by the High Court of Gujarat at Ahmedabad, it was held that the assessee is not required to deduct the TDS under Section 194-C on gas transportation charges, as it is not a contract for services but a contract for sale of goods. He submits that the facts of the present case are identical to that of the Gujarat's case and that GAIL follows and enters into similar agreement for supply of natural gas across the country, to its industrial consumers. Shri S.K. Garg, learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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