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TMI Blog2016 (7) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... resent Tax Appeal for consideration of the following substantial question of law: Whether the Income Tax Appellate Tribunal is right in law and on facts in holding that the assessee was not liable to deduct tax at source under section 194 C of the Income Tax Act, 1961 from the payments made to Mukadams and Transporters? 3. The assessee is engaged in the business of manufacturing of sugar from sugarcane. On verification of TDS it was noticed that the assessee was not deducting tax on payment to contractors i.e. payments made to mukadams and transporters. The Assessing Officer held that the assessee was responsible for making the payment and not deducting tax on such payments. On appeal, the CIT (Appeals) held that the assessee was bound t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (TDS) VS. KRISHAK BHARTI COOPERATIVE LTD.(Supra). In that case, the assessee was engaged in the manufacture of fertilizers and for the said purpose, it used to consume natural gas. The assessee, therein, was supplied natural gas by different agencies through pipelines. In that case, according to the Revenue, while purchasing the gas from different agencies, the assessee had entered into a work contract for transportation of natural gas from the sellers premises to the buyers consumption point, and therefore, they held that the assessee, therein, was required to deduct TDS. However, this Court, in that case, held that to transport the gas was a part of sale transaction, and therefore, the assessee, therein, was not required to deduct TDS. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and/or point out any contrary decision. 7. Having heard Mr. Bhatt, learned Senior Counsel appearing on behalf of the Department and Mr. Manish Shah, learned advocate appearing on behalf of the assessee and the question posed for consideration by us reproduced hereinabove and considering the decision of this Court in the case of Krishak Bharati Co-operative Ltd. (Supra), the question, which is raised in the present appeal is required to be answered in favour of the assessee. We are not giving any elaborate reasons for the same as in Tax Appeal No. 211 of 2006, this Court has already discussed the same. The facts of the present case are identical to the said appeal. We are also supported in our view by two other decisions of this Court rend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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