9911796707
TMI Blog2016 (4) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... ase in deleting the order passed u/s 201(1) and interest charged u/s 201(1A) of the IT Act of Rs. 28,23,468/- and Rs. 27,10,528/- respectively for AY 2004-05 by the AO even though during the course of verification it was noticed that the sugarcane from fields of all the farmers was spread in large area. Proper and cost effective management of cutting and transporting the sugarcane is done by the assessee. It is also observed that the assessee was not deducting tax on contractual payments of cutting and transporting the sugarcane from fields to the factory gate u/s 194C of the IT Act. 2. On the facts and in the circumstances of the case, the ld. CIT(A) ought to have upheld the order of the AO. 3. The appellant craves leave to amend or al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the order passed by A.O. The arguments of the A.O. as well as appellant has been considered. The appellant has made out a strong case against the Assessing Officer ^s order. The following evidence / arguments of appellant clinch the matter in favour of the appellant. [1] The appellant pays ex- factory / gate delivery cane price to Cane growers. [2] The farmer member is responsible to cut his sugarcane and supply the same at the factory gate of the appellant. [3] Payments made to cane growing farmer members of the Co - op Society is in the nature of purchase price, on which section 194 C does not apply. [4] The appellant pays ex- factory / gate delivery price to farmers as per maximum price fixed by the Central Government from ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer's action of treating the appellant as 'assessee in default' and working out liability u/s 201 & 20i(lA) is not sustainable. In view of the above, all the grounds of appeal from SI. No. 1 to 7 are decided in favour of the appellant. In the result, appeal stands ALLOWED." 4. Aggrieved, Revenue is now in appeal before the Tribunal. 5. The ld. DR supported the observations made by the Assessing Officer. 6. On the other hand ld. AR submitted that the issue under appeal is now squarely covered in favour of assessee by the decision of the Tribunal in the case of ITO vs. Shree Chalthan Vibhag Khand Udyog Mandli Ltd. in ITA No.378/Ahd/2012 for Asst. Year 2004-05 (copy placed on record), wherein similar grounds have been adjudicated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to amend or alter any ground or add a new ground, which may be necessary. 4. It is, therefore, prayed that the order of the Ld. CIT(A) may be cancelled and that of the Assessing Officer may be restored to the above effect. 8. The co-ordinate bench has decided the above ground(s) giving following decisions:- "4. We have heard the rival submissions, perused the orders of the lower authorities and material available on record. We find that the ld. CIT(A) deleted the addition by observing as under:- "6. DECISION:- 6.1 I have gone through the order passed by A.O. The arguments of the A.O. as well as appellant has been considered. The appellant has made out a strong case against the Assessing Officer's order. The following evidence/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the argument of appellant is that they are making advance payment of sugar cane purchase price to their farmer members. The farmers are agriculturists. Their income is taxable. It is clear that Section 194 C of the I T Act is not applicable in appellant's case." Having regard to the facts and circumstances of the case as well as arguments of the appellant and the Judgment of Hon'ble ITAT, it is held that the assessing officer is not justified in invoking the provisions of Sec. 194C against the appellant. The Assessing Officer's action of treating the appellant as 'assessee in default' and working out liability u/s 201 & 201(1A) is not sustainable." 5. There is no dispute with regard to the fact that the payment @ Rs. 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
