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TMI Blog2018 (3) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... of commissioner charges paid to dairies - Held that:- Assessee provided raw milk and necessary materials to the dairies for processing as per specification of assessee. The dairies custom pack it on job work basis. Assessee deducted tax u/s.194C on conversion charges ₹ 19.77 crores paid to such dairies since the job work falls within definition of ‘work’ u/s.194C. CBDT circular No.13/2006 dated 13th Dec, 2006 relied. Further stated the services rendered by the dairies are not technical services since the dairies are not expert on any technology which they could provide to the assessee, nor they provide any managerial services/consultancy services since there is no advice given by dairies to the assessee. The dairies are not assigned any exclusive work relating to quality check but are assigned work relating to conversion/processing of milk and milk products, wherein one of the requirements is to ensure quality parameters. Payment made for getting jobs done like testing, inspection of materials, etc. were of nature of material & labour contract liable to TDS u/s.194C. - ITA No.161/Rjt/2017, CO No.9/Rjt/2017, ITA No.449/Rjt/2016, CO No.3/Rjt/2017, ITA No.60/Rjt/2016, CO No.7/R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant's premises on 25/11/2014 for verification of TDS compliance and thereafter a show-cause notice was issued. Requesting the assessee to furnish the details of TDS made till date. Assessing Officer passed an order u/s.201(1) and 201(1A) on 28th March, 2016 holding the appellant to be an assessee in default for short deduction of tax at source from aggregate sum of ₹ 3,37,12,318/- and raised demand thereof along with interest u/s.201(1A) of ₹ 1,05,13,514/-, which is being challenged by the appellant and ld.CIT(A) partly allowed the appeal of the assessee. 4. Now department is before us. 5. We have gone through the relevant record and impugned order. So far Ground No.1 is concerned. Ld. AO has discussed the issue on Page No.10, Para 4(i) and ld. CIT(A) has discussed the detail at Page No.6, Para 5.3. As we can see that AO has contended that the payment for boarding and lodging expenses was made by the assessee to auditors on the basis of bills raised by them on which service tax was also charged and therefore, he considered it as payment to auditors which is taken at source u/s.194J. However, assessee submitted that the payment for boarding and lodgin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elationship between the company and MAAHI nor authorise either party to made a representation or incur any liability on behalf of the other party Similar issue was arose during the Asst. Year 2015-16 in assessee s own case. Ld. CIT(A) granted the relief to the assessee. Payment is made to Sahayak on percentage basis on various parameters like number of farmers pouring milk, fat and SNF factor in milk, quantity to mild collected etc. which ensures payment is commensurate with work performed. The nature of work carried out by the Sahayak are covered by provisions of section 194C and accordingly tax was deducted on the same accordingly. Ld. AR cited a decision of Bhopal Sugar Industries Ltd. vs. STO 40 STC 42 (SC) and CIT vs. Ahmedabad Stamp Vendors Association (25 taxmann.com 201)(SC). On the basis of the consistency, we dismiss this ground of appeal of department. 8. So far as Ground No.3 is concerned that the ld. CIT(A) has erred in law as well as on facts of the case in holding that the assessee should not be treated as assessee in default for nondeduction of tax at source under section 194J of the I.T. Act, on short deduction of tax on payment of commissioner charges paid to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d copy of the order of the ld . CIT ( A ). 9. In support of its contention, ld. AR cited a judgment of Madras High Court in case of Kumudam Publications (P.) Ltd. 55 Taxman 526 and Pune Tribunal in case of Bharat Forge Ltd. vs. ACIT 36 taxmann.com 574 held that payment made for getting jobs done like testing, inspection of materials, etc. were of nature of material labour contract liable to TDS u/s.194C. 10. Respectfully following the above said judgments, CIT(A) has already given them relief in F.Y. 2014-15 and on the principle of consistency, we dismiss this ground of appeal of the department. 11. In the result, appeal filed by the department is dismissed. 12. Now we come to Cross Objection No.9/Rjt/2017 in ITA No.161/Rjt/2017 for Asst. Year 2014-15. Following Grounds has taken in this Cross Objection: 1 . The CIT ( A ) erred upholding the order u / s . 201 ( 1 ) and 201 ( 1A ) for short deduction of tax without appreciating that section 201 ( 1 ) does not envisage short deduction of tax on account of application of different section as a default under that section . It is submitted it be so held now . 2 . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 069 /-. 2 . The Ld . CIT ( A ) has erred in law as well as facts of the case in holding that tax is not required to be deducted at source u / s . 194H of the I . T . Act on commission payments made to Sahayak . 3 . The Ld . CIT ( A ) has erred in law as well as facts of the case in holding that the assessee should not to be treated as assessee in default for non deduction of tax at source under section 194J of the I . T . Act, on short deduction of tax on payment of conversion charges paid to diaries . 4 . On the facts and in the circumstances of the case, the Ld . CIT ( A ) ought to have upheld the order of the A . O . passed u / s . 201 ( 1 ). 19. In this case, all these common grounds have decided in favour of the assessee and against the department. So decision of ITA No.161/Rjt/2017 shall also apply in this appeal as well. 20. In the result, this appeal of the department is dismissed. 21. Now we come to Cross Objection No.7/Rjt/2016 in ITA No.60/Rjt/2016 for Asst. Year 2015-16. Following grounds have taken by the department in the Cross Objection: 1 . The Ld . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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