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TMI Blog2023 (11) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts - HELD THAT:- 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Opponent(s) No. 1 : None ORAL ORDER (PER : HONOURABLE MR. JUSTICE BIREN VAISHNAV) 1. The relevant facts of the case are that the assessee, engaged in the business of selling milk and milk products, had made payment 29,63,90,780/- to Mother Dairy and Milk Pvt. Ltd. of Rs. M/s. Giriraj for conversion of raw milk into processed milk and milk products. On these paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correctly applied section 194C of the Income Tax Act, 1961 to payments made to dairies. On the strength of the order of the CIT (Appeals)-1, Rajkot, the assessee contends that that disallowance under section 40(a)(ia) becomes unjustified. 3. The assessee has also made an alternative plea that section 40(a)(ia) can be invoked only in the event of on-deduction of tax at source and not for short d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the appeal. Perusal of the order of the Tribunal would indicate that in the assessee s own case in ITA No. 161/Rjt/2017 the coordinate bench of the Tribunal had held that the 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 under section 194C on conversion charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rue characteristic. 6. Thus the Tribunal relying on assessee s own precedent which was not challenged, held that processing of milk falls under Section 194C of the Act and there is no question of short deduction by the assessee. The Tribunal therefore rightly deleted the addition made by the Assessing Officer under Section 40(a)(ia) of the Act. 7. In view thereof, no substantial question of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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