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Income-Tax Officer, TDS-3, Surat Versus Shree Madhi Vibhag Khand Udyog Sahakari Mandali Ltd

2017 (5) TMI 120 - ITAT AHMEDABAD

TDS - payments made to the farmers representing cutting and transporting of the sugarcane - assessee claims that 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 - Held that: - The Tribunal has followed the judgment of Hon’ble Gujarat High Court in assessee’s own case for AY 2003-04 and held that the su .....

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unal 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/- worked out as interest under Section 201(1A) of the Incometax Act, 1961 (herein after referred to as the Act ). 3. The brief facts of the case are that the assessee is a Co .....

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nd 2004- 05. As a matter of fact, it was found that the assessee did not deduct the TDS on the payments made representing harvesting and transporting of the sugarcane. The Assessing Officer has worked out the amount ought to be paid by the assessee @ ₹ 300 per MT on an estimate basis. In his opinion, an amount of ₹ 33,98,25,600/- was paid by the assessee on which it ought to have deducted the TDS @ 2% plus education cess on income-tax. Since the assessee failed to deduct the TDS, the .....

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ssee 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 .....

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the ld.DR and gone through the written submissions. We find that this issue was considered in the case of the assessee by the Hon'ble Gujarat High Court in the Asstt.Year 2003-04. The judgment of the Hon'ble Gujarat High Court has been placed on page no.47 to 52 of the paper book. In that order, the Tribunal has decided the issue against the assessee. The question framed by the Hon'ble Gujarat High Court reads as under: "Whether in the facts and in the circumstances of the case .....

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ribunal. It is an admitted position that in the case on hand 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 .....

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ises to the buyer's 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 our view, therefore, the decision of the Apex Court in the case of "CIT (TDS) VS. KRISHAK BHARTI COOPERATIVE LTD."(Supra) applies in full force to the facts of this case. The aforesaid provision .....

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