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TMI Blog2015 (11) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the case on hand, the supply of sugarcanes at the gates of factories of the respective assessees was a part of sale transaction, and therefore, we are of the opinion that the assessees are not liable to deduct TDS - Decided in favour of assessee. - ITA No. 378/Ahd/2012 - - - Dated:- 30-11-2015 - SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER Appellant by : Shri K. Madhusudan, Sr. DR. Respondent by : Shri Mitesh S. Modi, AR ORDER PER KUL BHARAT, JUDICIAL MEMBER : This appeal by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-I, Surat ( CIT(A) in short) dated 15.11.2011 for Assessment Year 2004-05. 2. The Revenue has raised following gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 201(1) and 201(A) and after considering the submissions of the assessee, passed an order u/s 201 and 201(1A) of the Act wherein the Assessing Officer declared the assessee as assessee in default and made an addition on account of TDS deductable and interest u/s 201(1A) of the Act. The assessee, aggrieved by the aforesaid order of the Assessing Officer, preferred an appeal before the ld. CIT(A) who after considering the submissions of the assessee allowed the appeal. Aggrieved by the above order of the ld. CIT(A), the Revenue is now in appeal before us. 3. At the outset, the ld. Counsel for the assessee submitted that the only effective ground is against the deletion of addition made u/s 201(1) and 201(1A) of the Act. He submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant. 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 time to time. 5. The appellant pays advance purchase price to cane growing members to meet expenses like, harvesting, cutting and transportation. 6. First installment of ₹ 185/- M.T is given as advance purchase price to farmer to enable them -to meet the expenditure of harvesting, cutting, and transporting. Thereafter, purchase price is again given to farmers in installments. This account is finally settled when the final ex-factory cane price is de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the tax on such payments as the payments were not given for carrying out the work of harvesting, cutting and transporting on behalf of the assessee. The Hon ble Gujarat High Court in assessee s own case (supra), under the identical facts has held as under:- 10. In the case on hand, the supply of sugarcanes at the gates of factories of the respective assessees was a part of sale transaction, and therefore, we are of the opinion that the assessees are not liable to deduct TDS. In view of the above discussion, the decisions relied on by Mr. Mehta shall not apply to the facts of the present case. Hence, the present appeals deserve to be allowed. 6. In the light of the above judgement of the Hon ble jurisdictional High Court, we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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