TMI Blog2014 (4) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... the activities performed by the society - the assessee had no profit motive and the activity of the society was more of a welfare activity - the reasoning adopted by the Tribunal is just and reasonable - it is not possible to state that there is any infirmity in the order of the Tribunal as there was no question of law arises for consideration – Decided against Revenue. - Tax Appeal No 1456 of 2011. - - - Dated:- 18-9-2012 - AKIL KURESHI, AND HARSHA DEVANI MS., JJ. JUDGEMENT Ms. Harsha Devani J.- In this appeal under section 260A of the Income-tax Act, 1961 (hereinafter referred to as the Act ), the appellantRevenue has challenged the order dated May 20, 2011, passed by the Income-tax Appellate Tribunal by proposing the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a person as per section 2(31) and the status of the assessee is an association of persons. The assessee is carrying on the business of travelling agency as per the tax audit report. Annual accounts of the assessee are audited. (iv) The assessee itself has stated that the service tax paid is allowable as per section 43B of the Act and has claimed credit for TDS as per section 199 of the Income-tax Act. The assessee cannot take a stand that only those sections which suit the assessee are applicable to the assessee and those sections which do not suit the assessee are not applicable. The assessee carried the matter in appeal before the Commissioner (Appeals) who deleted the disallowance. The Revenue carried the matter before the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued for a few years. However, the number of such farmers was increasing day by day and it became difficult for the ONGC to maintain accounts of each individual farmer for releasing payments. With a view to obviate such difficulties in September, 1988, the ONGC decided that a co-operative society be formed consisting of farmers whose land was acquired by the ONGC which could maintain the individual account of each farmer and would be one-stop entity co-ordinating all matters with the ONGC on behalf of the farmers. Thus, the assessee-society, a nonprofit making organisation was formed. The assessee was maintaining vehicle-wise accounts comprising details of expenses and receipts. All these vehicles were hired by the ONGC and lump sum receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his mechanism helps both the ONGC and the farmers as it precludes individual interaction and smoothens the entire operation. The society prepares the individual log book for the farmers and on the basis of such log books the ONGC releases the payment which is distributed to the farmers. The original agreement always remained between the ONGC and the individual farmers. The Commissioner (Appeals), accordingly, found that there was no element of works contract in terms of the provisions of section 194C in the activities performed by the society and, accordingly, set aside the disallowance under section 40(a)(ia) of the Act. He further held that there was no case for disallowance under section 40A(3) as no expenditure was incurred by the socie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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