Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 881 - AT - Income TaxTDS u/s 194C - payments to HGL and transporters - non deduction of tds - Held that:- In this case undoubtedly, the assessee in not the person who makes the payment directly to HGL and Transporters. The assessee categorically proved with necessary proof that it had made payments on behalf of the farmers out of amount payable to the farmers towards cost of sugarcane. The assessee also proved with evidence that the impugned payments to HGL and transporters is not its expenditure, but only advance payment to farmers which was finally adjusted against cost of sugarcane payable to the assessee. We, therefore, of the opinion that where assessee a sugar manufacturer made payment of harvesting and transportation charges to harvesting and transport contractors on behalf of farmers which formed part of purchase price of sugar cane for assessee, and same had not been claimed as separate deduction, provisions of sections 194C of the Act is not applicable, consequently the assessee is not liable to deduct TDS on such payments. Thus the impugned payments to HGLs and transporters paid by the assessee company on behalf of farmers are not hit by the provisions of sec. 194C of the Act. The CIT(A) after considering relevant facts, rightly deleted additions made by the A.O. u/s 201(1) of the Act. - Decided n favour of assessee
|