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2015 (3) TMI 490 - AT - Income TaxTransportation charges paid to GAIL - TDS liability u/s 194C or u/s 1941 - CIT(A) deleting the amount of TDS liability determined by the ITO(TDS) u/s 1941 - Held that:- As relying on asseessee's own case [2013 (7) TMI 1 - ITAT LUCKNOW] GAIL has not only supplied/transported the gas sold by it but also the gas purchased by the assessee from other sellers. In those cases the transmission charges paid by the assessee to GAIL certainly attracts the provisions of section 194C of the Act as per circular No. 9 of 2012 of CBDT. From a careful perusal of the orders of the lower authorities, we find that the assessee has also admitted in his written submissions filed before the CIT(A) that it has also purchased the gas from other sellers i.e. Reliance Industries Ltd. apart from the GAIL but the same was transported by the GAIL and the assessee had paid transmission charges to the GAIL and also deducted TDS on the payment but this aspect has not been clarified by any of the lower authorities as they have treated the entire payment of transmission charges as has been made u/s 194I or 194C of the Act. In the light of these facts, we are of the considered opinion that this aspect is required to be examined by the lower authorities as to how much transmission charges are paid by the assessee to GAIL for transportation of the gas purchased by it from GAIL and also the amount of transmission charges paid by the assessee to GAIL for transportation of gas purchased from other agencies. Accordingly, we set aside the order of CIT(A) and restore the matter to the file of the Assessing Officer with the direction to reexamine the issue afresh in the terms indicated above. If it is proved that the assessee has deducted the TDS on the transmission charges paid to GAIL for transmission of gas purchased from other agencies, no disallowance can be made, otherwise the Assessing Officer is required to act in accordance with law. - Decided in favour of revenue for statistical purposes. Validity of rectification u/s 154 - Assessee in default on non-deduction of TDS on the payment of transmission charges - AO passed an order under section 154 and substituted section 194C by section 194I having noted that by typographical mistake in the order, section 194C was mentioned in place of section 194I - CIT (Appeal) deleting the amount of TDS liability for the A.Y. 2010-11 determined by the ITO(TDS) U/s 1941 - Held that:- Having carefully examined the order of the ld. CIT(A), we find that the ld. CIT(A) has disposed of the appeal in the light of the Tribunal’s order for assessment years 2007-08 to 2009-10, in which the Tribunal has given a specific finding that TDS is not required to be deducted in case the purchase is made from GAIL. With certain directions, the Tribunal has also set aside the order of the ld. CIT(A) and restored the matter to the Assessing Officer. In the light of these facts, the rectification application is not sustainable. We accordingly find no infirmity in the order of the ld. CIT(A) and we confirm the same. - Decided against revenue.
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