TMI Blog2015 (9) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to the factory premises. The AO is totally silent in his order. On the other hand, the assessee has made reference to the resolutions, bye-laws and standing orders in this respect. The ld.First Appellate Authority has also considered the submission of the assessee in details, and thereafter recorded a finding that the assessee was not at all responsible for transportation of the sugar cane. Thus, section 194C is not applicable in the present situations. The ld.CIT(A) has rightly deleted the demand raised by the AO. - Decided in favour of assessee. - ITA No. 2341/Ahd/2011 - - - Dated:- 24-7-2015 - G. D. Agrawal, VP And Rajpal Yadav, JM, JJ. For the Petitioner : Smt. Sonia Kumar, Sr. DR For the Respondent : None ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cane was being transported by the sugar factories. Thus, sugar factory ought to have deducted tax on contractual payment of getting and transporting the sugar cane from fields to the factory area under section 194C. In the opinion of the AO, the assessee failed to deducted TDS on such payment, therefore, order under sections 201(1) and 201(1A) ought to be passed. 5. In response to the notice of hearing, it was contended by the assessee that as per the arrangement with the farmers, the sugar cane is being supplied either by the farmers or registered societies at the factory area. The assessee has not been incurring any expenditure on the alleged transportation of sugar cane. The assessee has narrated various resolutions as well as referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er account for the season 2003-04 showing therein the ex-factory price paid for the sugarcane supplied by the cane grower, member. This clearly proves that the assessee, sugar, mill has paid the, ex-factory price of ₹ 1,326/- per MT in various installments as approved by the Board of Directors (for which the copies of resolutions were already furnished. The copies of ledger accounts of the following members are furnished herewith. (a) Ambubhai Bhikhabhai (b) Bhagubhai Rachhodbhai Patel (c) Bharatbhai Nathubhai Patel (d) HasmukhbhaiMaganbhai Patel. (v) Detailed ledger of cane purchase account and payments of ex-factory cane price made to, cane grower members. From the above submissions, it is crystal clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee is that in all these cases, the deductee were assessed to tax 85 have paid tax on the income which they received from the deductor. Whereas, in the present case, the assessee has not been able to even furnish the names of these deductee forget apart the details of payments made to them their assessment details. This has resulted in loss of revenue by the Department. Therefore, these decisions differ from the case of the assessee on facts also. 12. For the year under consideration, the assessee has not furnished any details for harvesting of sugarcane and transport contractors. It is therefore, decided to work out such payments on the basis of quantity of sugarcane purchased and advance per metric ton of sugarcane gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of purchase price, on which section 194C cases not apply. [4] The appellant pays ex-factory / gate delivery price to farmers as per maximum price fixed by the Central Government from time to time. [5] The appellant pays advance purchase price to cane growing members to meet expenses like, harvesting, cutting and transportation. [6] First installment of ₹ 185/- M.T is given as advance purchase price to farmer to enable them to meet the expenditure of harvesting, cutting, and transporting. Thereafter, purchase price is again given to farmers in installments. This account is finally settled when the final ex-factory cane price is determined by the appellant. [7] Copy of Member account in appellant's s boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ully. Section 194C provides that if any person responsible for paying any sum to any resident for carrying out any work in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash, or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equivalent to the rates provided in clause no.(i) (ii) and other sub-sections of section 194C. As far as the quantification of TDS amount is concerned, that is not in dispute. The dispute is whether the assessee is liable to deduct TDS or not. The assessee has contended that it has not got the sugar cane transported with the help of contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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