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TMI Blog2014 (1) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... ,JJ. For the Petitioner : Shri Rakesh Gupta For the Respondent : Shri G. R. Kokani ORDER Per N. K. Saini, A. M. This is an appeal by the department against the order dated 10/12/2012 of Ld. CIT(A), Bikaner. The following grounds have been raised in this appeal. "1. Whether on the facts and in the circumstances of the case, the Learned CIT(A) has erred in holding that the provisions of Section 194C of the Income Tax Act, 1961 were not applicable in respect of the payments made by the assessee to Rajsasthan State Agriculture Marketing Board for construction/repairs/maintenance of the market yards and missing link roads. 2. Whether on the facts and in the circumstances of the case, the Learned CIT(A) has erred in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those payments. The A.O. also observed that legal/professional fees was paid to various lawyers and accountants violating the provisions of section 194J of the Income-tax Act, 1961 [hereinafter referred to as 'the Act', in short] and payments were made to various persons for hiring of vehicles as well as printing of official stationery and tax was not deducted on the same, therefore, the provisions of section 194C were clearly violated. The A.O. issued show cause notice intimating that it was proposed to treat payments to RSAMB, made towards the works listed, as contractual payment attracting provisions of section 194C. The A.O. did not find merit in the submissions of the assessee and demand u/s 201(1) 201(1A) of the Act for assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own infrastructure for carrying out the work as private contractors were engaged to do the same and that the funds received by RSAMB were further disbursed to such contractors whereby the same were in the nature of deposit and that the RSAMB deducted tax at source @2% from the contractors who executed the work. It was stated that had the contractors been sub-contractors the RSAMB would have deduced tax at source @ 1% only. It was further stated that RSAMB by supervising the work and not carrying out the work itself functioned as a consultant only. Reliance was placed on the decision of the ITAT Lucknow Bench in the case of U.P. State Industrial Development Corporation Ltd. Vs ITO reported at 81 ITD 173. It was argued that on the one hand th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act for making payments to advocates/chartered accountants for professional services, the assessee submitted to the ld. CIT(A) that the payments for professional services by cheque were made to the advocates/chartered accountants who had paid due tax on this professional receipts and this fact was also intimated to the A.O. at the time of assessment proceedings. It was further stated that Circular No. 275/202/95-IT(B) dated 29.1.1997 issued by the CBDT declares as under :- 6 "No demand visualized u/s 201(1) should be enforced after the tax deductor has satisfied the officer in charge of TDS that taxes due have been paid by the deductee, however, this will not alter the liability to charge interest u/s 201(1A) of the Act till the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the learned counsel for the assessee. 9. After considering the submissions of both the parties and perusing the material on record, it is noticed that a similar issue having identical facts has already been adjudicated by this Bench of the Tribunal in the case of ITO(TDS), Udaipur vs. Krishi Upaj Mandi Samiti, Pratapgarh, Chittorgarh in I.T.A. No.06/Jodh/2013 (supra) wherein the relevant findings have been given in para 7 as under: "7. We have considered the submissions of learned D.R. and carefully gone through the material available on the record. In the present case, it is an admitted fact that the learned CIT(A) has deleted the impugned addition by following the decision dated 05/08/2011 of ITAT Jaipur Bench 'B' in the case of KUM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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