9911796707
TMI Blog2024 (9) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of buyer and for the very same amount the assessee raised its invoice to the buyer. Therefore for such type of transactions, the assessee receives Commission on which tax is deducted under section 194H of the Act. Also in some cases buyers deduct Tax u/s 194Q of the Act apart from u/s 194 H and in this regard sample invoices raised by the assessee had also been placed on record. As relying on Shri Madan Lal Gupta [ 2024 (4) TMI 1174 - ITAT JAIPUR] Bench directs the AO to allow the credit of TDS deducted under section 194 H and 194Q to the assessee. Thus this ground raised by the assessee stands allowed. - Hon ble Shri Sandeep Gosain, Judicial Member For the Assessee : Shri C.P. Chawla, AR For the Revenue : Mrs. Monisha Choudhary, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Agent) and registered with Baran- Krishi Upaj Mandi Samiti, accordingly shown Adat/Commission as gross receipt in the return of income and consequently erred in confirming disallowance of credit of TDS, u/s 194H 194Q amounting to Rs. 2,62,264/-made by the DCIT, CPC Bangalore, as per the provisions of rule 37BA of Income Tax Rules 1962, while processing return u/s 143(1) of the Act on 11/01/2024. 2.1 The only issue involved in the present appeal is with regard to denial of credit of TDS of Rs. 2,62,264/- deducted under section 194 H and 194Q of the Income Tax Act. 2.2 On this issue, the Bench has heard the counsel for both the parties and we have also perused the material placed on record and the orders passed by the revenue authorities. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 780/- the details of which are also placed at paper book page number 26 to 31. The Bench has also noticed that from the very beginning the assessee had specifically pleaded that the assessee had claimed TDS deducted u/s 194H of the Act at Rs. 2,53,077/- and also shown corresponding receipts i.e. Adat/Commission in the return of income, for the year under consideration. Therefore, while processing return of income the AO should have allowed full credit of TDS deducted u/s 194H of the Act as claimed in the return at Rs. 2,53,077/- These facts clearly show that the AO has grossly erred in not allowing credit of above TDS, by invoking provisions of Rule 37BA of Income Tax Rules 1962, totally ignoring the fact that the Assessee is Kachha Artla a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les affected on behalf of the principals and only Commission has to be considered for the purpose of Income Tax under Section 44 AB of the act. And also placed on record some sample invoices raised by the assessee, which are verifiable from form number 26 AS. Apart from this Reliance has also so been placed on the latest decision of the Co-ordinate bench of ITAT in the case of Madan Lal Gupta Vs. ITO, in ITA No. 192/ JPR/ 2024 decided on 30th of April 24. After having gone through the facts and arguments of both the parties and also perusal of the documentary evidences placed on record as well as judgement relied upon by the assessee I am of the considered view that it has already been clarified in circular number 452 dated 17th of March 86 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 Ld. CIT(A), the TDS ought to have been deducted u/s 194J and not 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 the assessee and 194Q is applicable because it deduction of tax at source on payment of certain sum for purchases of goods. Thus, grounds of appeal raised by the assessee are allowed as per terms as per terms indicated above. In the result, the appeal of the assessee is allowed as indicated abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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