TMI Blog2016 (8) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... at source by applying provisions of Section 194C instead of 194J of the Act. - Decided in favour of the assessee - TAX APPEAL NO. 531 of 2016 TO TAX APPEAL NO. 534 of 2016 - - - Dated:- 25-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE FOR THE OPPONENT : MR B S SOPARKAR, CAVEATOR ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. These appeals are admitted for consideration of the following substantial question of law: Whether the Appellate Tribunal has substantially erred in holding that in respect of Port Charges provisions of Section 194C are applicable and not 194J, though as per the AO the services provided by the C F agents were in the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. Order of the CIT(A) was challenged by the revenue before the Tribunal and the Tribunal upheld the order of CIT(A) and thereby dismissed appeals of the revenue. Being aggrieved and dissatisfied with the impugned judgment and order passed by the Tribunal, the revenue has preferred the present Tax Appeals for consideration of the aforesaid substantial question of law. 4. Mr. M.R. Bhatt, learned Senior Counsel appearing with Ms. Mauna Bhatt, learned advocate for the revenue submitted that the CIT(A) as well as the Tribunal erred in deleting the addition made u/s 201(1) and 201(1A) of the Act. He submitted that on going through the facts of the case it transpires that C F agent provides services from receiving goods from factory to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal in the case of Navine Flourine International Limited vs. ACIT reported in 14 ITR 481 (Ahmedabad) held that deoiled cake, raw cotton waste and maize husk are not in the nature of scrap within the meaning of provisions of Section 206C of the Act and directed the A.O to delete the demand on this issue. The CIT(A) observed that C F agents were nowhere remotely indicated in the explanation to Section 194J of the Act and are in the nature of independent contractors and accordingly directed the A.O to delete the demand on this issue. 6.1 It shall be relevant to peruse Section 194J of the Act, more particularly the explanation, clause (a) which defines professional services and the same reads as under: (a) professional services m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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