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2023 (11) TMI 200 - HC - Income TaxTDS u/s 194C or 194J - Short deduction of TDS - Addition u/s 40(a)(ia) - payments for conversion of raw milk into processed milk and milk products - HELD THAT:- Services rendered by the dairies are not technical services since the dairies are not expert on any technology which they could provide to the assessee, nor they provide any managerial services/consultancy services since there is no advice given by dairies to the assessee. The dairies are not assigned any exclusive work relating to quality check but are assigned work relating to conversion/processing of milk and milk products, wherein one of the requirements is to ensure quality parameters. The main and basic nature of transaction viz. conversion/processing of mild on job work basis does not lose its true characteristic. Tribunal relying on assessee’s own precedent [2018 (3) TMI 1304 - ITAT RAJKOT] which was not challenged, held that processing of milk falls under Section 194C of the Act and there is no question of short deduction by the assessee. The Tribunal therefore rightly deleted the addition made by the AO u/s 40(a)(ia) of the Act.
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