TMI Blog2024 (4) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... that deductee, PACS are having banking facility and certainly must be having PAN and had the details of the same been made available to the assessing officer, TDS may not have been calculated at the maximum rate of 20%. Therefore, considering all in order to compute the correct amount of commission paid and in order to ascertain the correct amount of tax to be deducted at source u/s 194H of the Act, the matter is restored to the file of the AO for carrying out necessary verification and calculation. Assessee is also directed to provide full co-operation to the assessing officer by placing all relevant material in order to get the needful information about correct amount of commission and correct amount of TDS u/s 194H of the Act. Accordingly, effective grounds of appeal raised are allowed for statistical purposes. - Dr. Manish Borad, Accountant Member And Shri Sonjoy Sarma, Judicial Member] For the Assessee : Shri Ravi Shankar, Advocate For the Revenue : Shri Sushil Kumar Mishra, JCIT, DR ORDER PER BENCH: The present appeals have been preferred by the assessee against the separate orders of the Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as CIT ] ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(1A) during the FY 2011-12 relevant to AY 2012-13 while passing the ex-parte assessment order u/s 201(1)(1A) of the Income tax Act, 1961 on 19.02.2018? 3. Whether the ld. CIT, NFAC, Delhi was justified on the facts and in circumstances of the case and in law to confirm the addition u/s 201(1)(1A) of the Income tax, 1961 amounting to Rs. 24,89,727/- in total made by the assessing officer on account of assessee in default u/s 201(1)(1A) during FY 2011-12 relevant to AY 2012-13 by dismissing the appeal of the assessee merely on the ground of non-compliance of notices u/s 250 of the Income tax Act, 1961 rather than deciding the appeal on merit on questions of facts and law based on information available on record? 4. For that the ld. CIT, NFAC, Delhi has erred in passing a vague and cryptic order. 5. For that the whole order is bad in fact and the law of the case and is fit to be quashed. 6. The appellant craves leave to add to alter, amend, modify and for delete any or all of the above said grounds of appeal. The appellant reserves its right to file rather submission in the appeal. 5. Brief facts of the case are that assessee is fully owned by State Government of Bihar and is engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and stated that the transaction between the assessee and PACS is on principal to principal basis and not in the nature of principle agent relationship and the commission paid to PACS is in the nature of profit mark up. 7. Per contra, ld. departmental representative vehemently argued supporting the orders of both the lower authorities. 8. We have heard the rival contentions of the parties and perused the record placed before us. The question before us is whether ld. CIT(A) is justified in confirming the action of ld. AO raising demand for non-deduction of tax at source u/s 194H of the Act on the alleged commission paid to Primary Agriculture Cooperative Society (PACS). 9. We note that the State Government in order to make purchase from the farmers at the minimum support price issued certain guidelines and the same are mentioned in the letter dated 07.12.2011 issued by letter no. 9624 by the Development Commission of Bihar. The copies of the same are placed at page 8 to 15 of the paper book. In para 12 of the said guidelines there is discussion about the role of Primary Agriculture Co-operative Society. 10. Under these guidelines, it is stated that the State Government through its n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not applicable on the facts of the instant case. A perusal of the guidelines referred (supra) and other notifications, it remains an admitted fact that the complete procedure for procurement of foodgrains and to provide minimum support price to the farmers is prepared by the Central Government with full assistance of State Government. Further, the State Government appoints Nodal Agency and provides guidelines for working of PACS. Every activity of the PACS relating to procurement of foodgrains, payment of MSP to the farmers loading and unloading of foodgrains, warehousing, VAT charges if any, cost of gunny bags and even the interest to be spent by PACS on the banking credit facility awarded on the direction of State Government are given by Central and State Government with their Nodal Agencies which includes assessee also. All these guidelines of the State Government clearly indicates that the PACS are only working as an agent of the State Government and each of their activity connected to procurement of foodgrains from farmers, payment of MSP to farmers and bringing of the foodgrains to the godowns owned by the State Government are part of the agency services. In the past, commi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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