TaxTMI 
TaxTMI 
2024 (5) TMI 88
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....ferred to as the 'Act') against order u/s 201(1)/(1A) of the Act holding the assessee as assessee in default towards non-deduction of tax at source. 2. Registry has informed that the instant appeals i.e. ITA Nos. 99 to 126/Pat/2024 (AYs. 2015-16) are time barred by 329 days and ITA Nos. 127 to 135/Pat/2024 (AYs. 2016-17) are time barred by 320 days. During the course of hearing, it has been contended that the concerned person who was looking after the affairs of income-tax, committed a mistake by not approaching the authorised representative for filing the appeals. He also submitted that the assessee being State of Bihar owned Corporation, various approvals were needed. Admittedly, the delay has occurred but the assessee could not have ben....
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....x, Act, 1961 made by the assessing officer on account of non deduction of TDS u/s 194H. 2. Whether the ld. CIT, NFAC, Delhi was justified on the facts and circumstances of the case and in law to confirm the addition u/s 201(1)(1A) of the Income tax, 1961 amounting to Rs. 14,59,071/- in total made by the assessing officer on account of assessee in default u/s u/s 201(1)(1A) during the FY 2013-14 relevant to AY 2014-15 while passing the ex-parte assessment order u/s 201(1)(1A) of the Income tax Act, 1961 on 16.02.2018? 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. 14,59,071/- in total made by the ass....
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....s raised, "commission" or "service charge" is charged. The revenue authorities examined the transaction carried out by the assessee during F.Y. 2013-14 and on going through the record, observed that for the purpose of procurement of food grains, the assessee corporation paid commission to PACS and the same is liable for deduction of tax at source u/s 194H of the Act. Since, no such tax was deducted by the assessee (deductor) on the payment of commission to deductees i.e. PACS, the ld. AO came to a conclusion that the assessee is in default for non-deduction of tax at source on commission u/s 194H of the Act. Further, ld. AO noticed that no details were filed about the Permanent Accountant Number of the PACS which left him with no option but....
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....n-deduction of tax at source u/s 194H of the Act on the alleged commission paid to Primary Agriculture Co-operative Society (PACS). 9. We note that the State Government in order to make purchase from the farmers at the minimum support price (MSP) issued certain guidelines and the same are mentioned in the letter dated 07.12.2011 vide letter no. 9624 by the Development Commission of Bihar. The copies of the same are placed in the paper book on record. In para 12 of the said guidelines, there is a discussion about the role of Primary Agriculture Co-operative Society. 10. Under these guidelines, it is stated that the State Government through its nodal agencies and the state owned corporation shall first select the PACS working at various dis....
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....ation, apart from the commission paid to societies on per quintal basis, PACS are also reimbursed for the mandi and labour charges, transportation charges, driage @ 1% of MSP, custody and maintenance charges, interest charges for two months, milling charges, administrative charges, cost of new gunny bags. 11. Before us, ld. counsel for the assessee has contended that the transactions between the assessee corporation and the PACS are on principal to principal basis because the risk is on the PACS for the procurement of food grains and they have to make payment in advance and get it reimbursed from the State Government. 12. On the above identical factual matrix and narrations in this set of appeals, we note that for the issue before us, the....
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....State Government are part of the agency services. In the past, commission was received as a percentage of MSP and thereafter commission is paid on per quintal basis. 13. Since assessee corporation is paying commission to PACS which are working as agents, we are inclined to hold that commission paid by assessee to PACS is liable for deduction of tax at source u/s 194H of the Act. We, however, notice that assessee did not get proper opportunity of hearing before the assessing officer and even before ld. CIT(A). We also note that the assessing officer has calculated the TDS at the maximum rate of 20% on account of non-availability of PAN even though all PACS are having bank accounts. We also note that commission has been calculated by applyi....