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2022 (5) TMI 821 - AT - Income TaxTDS u/s 194C - determination of job work charges / miller cost - procurement agency and the miller, by-products to the tune of 33% of the paddy milled are being retained by the miller free of cost, whereon no TDS has been deducted by the appellant deductor - As per AO milling costs paid by the appellant are discounted costs and need to be increased by the cost of by-products (as determined by the A.O.) for the purpose of deduction of tax at source - HELD THAT:- The matter is squarely covered in favour of the assessee and against the revenue by the consolidated order passed by the Chandigarh Benches of the Tribunal [2018 (12) TMI 398 - ITAT CHANDIGARH] as held property in the by-products comes into ownership of the millers from the very point of coming of it into existence, hence, in this case the assessee 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 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. This issue is decided in favour of the assessee / Procurement Agencies.
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