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TMI Blog2024 (4) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to disclose the turnover appearing in the tax deduction details u/s. 194Q because he is acting as the Kachcha Arhtia i.e. an agent and the turnover appearing in the sale invoices are merely the sales made against the equal amount of purchase made from the farmers and effectively it is not the turnover of the assessee. So far as the observation of the Ld. CIT(A), the TDS ought to have been deducted u/s. 194J and 194Q, we fail to find any merit because section 194J refers to deduction of tax on fees for professional on technical services which is not at all applicable in the case of assessee and 194Q is applicable because it is deduction of tax at source on payment of certain sum for purchase of goods. Thus, grounds of appeal raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee did not bring any relief. Finally, the assessee preferred appeal before the Ld. CIT(A) but again failed to succeed. Now assessee is in appeal before the Tribunal. 4. Ld. Counsel for the assessee referred to the detailed written submission as well as the paper book containing 138 pages and summarized his submission stating that the TDS deducted u/s. 194Q of the Act was for the turnover carried out by the assessee on behalf of its client. The assessee is a Kaccha Artia and acts only as an agent for its constituents and not as a principal. Drawing reference to sample invoices on which TDS deducted u/s. 194Q of the Act is stated that the amount invoiced by the assessee to the principal buyer and the value of goods transferred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... So, admittedly, the amount invoiced by the assessee to the principal buyer and the value of goods transferred to assessee from the farmer is same and purely on behalf of its principal. Now, for carrying out such transaction assessee receives commission on which tax is deducted u/s. 194H of the Act. Such commission income is shown as a turnover. To this extent, there is no dispute and the credit of TDS u/s. 194H has been allowed. 7. The point of dispute is for the TDS deducted u/s. 194Q i.e. deduction of tax at source on payment of certain sum for purchase of goods and as per sub-section (1) of section 194Q any person being a buyer who is responsible for paying any sum to any resident for purchase of any goods of the value or aggregate of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven facts and circumstances, we find that on account of the new amendment brought in section 194Q of the Act the principal of the assessee agent has deducted TDS u/s. 194Q of the Act in addition to section 194H for the commission paid to the assessee and, therefore, the assessee is entitled to credit of tax deducted u/s. 194H as well as sec. 194Q and we further hold that assessee is not required to disclose the turnover appearing in the tax deduction details u/s. 194Q because he is acting as the Kachcha Arhtia i.e. an agent and the turnover appearing in the sale invoices are merely the sales made against the equal amount of purchase made from the farmers and effectively it is not the turnover of the assessee. So far as the observation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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