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2016 (5) TMI 876 - AT - Income TaxTDS u/s 194H - whether payment of milk purchase price difference to the milk societies (DCS and PDCS) is a payment of commission/brokerage liable for deduction of tax at source? - Held that:- The Coordinate Bench has considered the identical issue in A.Y. 2008- 09 and 2011-12, which is squarely applicable on the facts and circumstances of the case for the years under consideration as the assessee’s transaction with distributor is sale. The risk and reward is with the distributor. The transaction is principal to principal basis. The distributor is not the agent of the assessee. From the side of assessee, no amount has been paid in form of commission or brokerage and the case laws referred by the assessee are squarely applicable. Supply of milk and milk products by assessee to the distributors was a sale agreement on principal to principal basis not liable for deduction of tax at source u/s 194H of the IT Act, 1961. See Ajmer Zila Dugdh Utpadak Sangh Limited V. ITO [2009 (7) TMI 827 - ITAT JAIPUR-B] and ACIT (TDS) V. M/s Jaipur Zila Dugadh Utpadak Sahakari Sangh Limited [2011 (9) TMI 1080 - ITAT JAIPUR] - Decided in favour of assessee TCS U/s 206C - Non collection of tax at source on sale of scrap - Held that:- The Coordinate Bench has considered this issue in earlier years and held that this scrap has not been generated during the manufacturing process and circular noted by the ld CIT(A) is also not applicable on the given facts and circumstances of the case. Accordingly, we delete the addition made by the ld Assessing Officer and confirmed by the ld CIT(A) - Decided in favour of assessee
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