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TMI Blog2016 (6) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, we are of the opinion that the assesses are not liable to deduct TDS as relying on COMMISSIONER OF INCOME TAX (TDS) Versus KRISHAK BHARATI COOPERATIVE LIMITED [2012 (10) TMI 655 - GUJARAT HIGH COURT] - Decided in favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee to Mukamams and Transporters who are members farmers of the Zone Samiti? Tax Appeal No. 1628 of 2008 Whether the Appellate Tribunal is right in law and on facts in holding that the provisions of Section 194C of the Act are not attracted in respect of payments made by the assessee to Mukamams and Transporters who are members farmers of the Zone Samiti? 2. The assessees are engaged in the business of manufacturing of sugar from sugarcane. On verification of the TDS returns it was noticed that the assessees were not deducting tax on payment to contractors i.e. payments made to the Mukadams and to transporters in accordance with the provisions of Section 194C of the I.T. Act. Accordingly, the Assessing Officer held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Tax Appeal No. 211 of 2006 and allied matter, the question, which is raised in the present appeals is required to be answered in favour of the assessees. The relevant portion of the decision dated 01.12.2014 reads as under: "9. Heard, learned Counsels for the parties and perused the material on record as well as the orders passed by the learned CIT(A) and the Tribunal. It is an admitted position that in the case on hand the assesses-cooperative societies used to purchase the sugarcanes from the farmers, on condition that the farmers shall supply the same at the gate of their respective factory. Meaning thereby, here, the supply of sugarcane at the gate of the factories of the assesses is not a separate work contract, but, it is es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive assesses was a part of sale transaction, and therefore, we are of the opinion that the assesses 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." 6.1 The Tribunal has rightly reversed the order of the CIT(A). Moreover, we have also referred to the decision of the Apex Court in the case of CIT (TDS) vs. Krishak Bharti Cooperative Ltd reported in [2012] 349 ITR 68 (Guj) and the said decision is squarely applicable to the facts of the present case. Therefore, we are of the view that the question raised in the present appeals is required to be answered in favour of the assessees. 7. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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