Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1368 - HC - Income TaxTDS u/s 194H on payment of commission/brokerage on price difference to the milk societies (DCS & PDCS) - Held that:- In view of the decision of this court in D. B. Income Tax Appeal No. 32/2016 (Pr. Commissioner of Income Tax, Jaipur-3 V/s Sikar & Jhunjhunu Zila Dugdh Utpadak Sahakari Sangh Ltd. [2017 (1) TMI 242 - RAJASTHAN HIGH COURT] as held the payment to RCDF cess, it has not been demonstrated by the Department that any managerial services in this connection have been rendered to assessee by RCDF qua this amount. RCDF is an apex cooperative body and cess is paid to it by virtue of federal structure in Rajasthan cooperative set up. Thus as far as assessee's business is concerned, there is no rendering of any managerial services by RCDF as alleged by the AO u/s 194H and upheld ld. CIT(A) u/s 194J. Since there is no rendering of any services and the payment is not made for any managerial services to RCDF, therefore, payment can neither be held as liable for TDS u/s 194H of the Act as commission/brokerage as held by the AO nor u/s 194J for rendering any managerial services as held by the ld. CIT(A). In view thereof, we hold that assessee's impugned payment to RCDF are not liable for TDS. - Decided in favour of assessee
|