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2017 (5) TMI 120

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..... fore, the assesses are not liable to deduct TDS - appeal dismissed - decided against Revenue. - ITA No. 2408/Ahd/2014 - - - Dated:- 1-5-2017 - Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member Revenue by : Mr. Kailash Ratnoo, Sr. DR Assessee by : Mr. Mitesh Modi with Mr. Akshay Modi ORDER Per Rajpal Yadav, Judicial Member The Revenue is in appeal before the Tribunal against the order of ld. CIT(A)-IV, Surat dated 12.06.2014 passed for AY 2011-2012. 2. The solitary grievance of the Revenue is that the ld. CIT(A) has erred in deleting the addition of ₹ 86,80,505/- which contains an amount of ₹ 70,00,407/- worked out under Section 201(1) and an amount of ₹ 16,80,098/- wo .....

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..... sue was examined by the Tribunal in AYs 2003-04 and 2004-05. In AY 2003-04, the issue was traveled upto the Hon ble High Court. The Tribunal has categorically held that the assessee was not under the obligation to make arrangement for transporting of the sugarcane upto the factory premises. It was duty of the farmers to deliver it at factory. In other words, the assessee used to pay sugarcane price to the growers at ex-factory price and any advance to the farmer is only towards cost of sugarcane finally adjusted from the sugarcane price payable to the grower on the basis of final price determined. In this way, ld. CIT(A) deleted the disallowance. 5. With the assistance of learned representatives, we have gone through the record careful .....

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..... the assesses-cooperative societies used to purchase the sugarcanes from the farmers, on condition that the farmers shall supply the same at the gate of their respective factory. Meaning thereby, here, the supply of sugarcane at the gate of the factories of the assesses is not a separate work contract, but, it is essentially the part of the sell transaction. In that view of the matter, here, it would be relevant to refer to the decision of this Court in CIT (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, ac .....

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