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TMI Blog2024 (11) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... eds to be fully allowed. Hence the proportionate TDS, disallowed to the extent of rupees 179551, is absolutely unjustified and therefore deserves to be allowed and thus, we order accordingly. Balance TDS credit being TDS under section 194Q - AR has drawn our attention to sample invoices on which TDS was deducted under section 194Q by the principal buyer and the corresponding Vikray Parchi issued by the Mandi to the respective farmers. These documents clearly show that the amount invoiced by the assessee to the principal buyer and the value of goods transferred by assessee to the farmer is exactly the same. Therefore turnover of kutcha aaratiyan is merely the commission paid by principal buyer on which the principal buyer deducts TDS under section 194H and which has been duly shown as income in the ITR by the assessee, therefore the TDS deducted by such principle buyers by virtue of provisions of section 194 Q is eligible to be claimed by the Kaccha aaratiya in his ITR on the Grounds that the assessee is a kacha arhatia and is duly registered as such with the Ramganj mandi, Kota. Perusal of the vikray parchi issued at the mandi to the farmers and the corresponding invoice raised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income credited by appellant. Appellant prays that since the appellant was a kacha adatiya the purchase value on which tax was deducted u's 194Q by buyers (Principal) was not shown as turnover of the appellant, and only commission earned on such value was credited as income. TDS refused thus deserves to be fully allowed. 3. That Ld. CIT(A)-NFAC has further grossly erred in confirming the refusal of TDS claimed by observing that if the assessee was a commission agent the TDS ought to have been deducted u/s 194J of the Act and not see 1940. Appellant prays that such observation being absolutely incorrect, as the TDS for commission income earned is covered under sec 194H of the Act. Further due TDS us 194H of the Act is duly deducted by the buyers who have also deducted TDS on the purchase value by virtue of sec 1940. Appellant prays that TDS claimed deserves to be fully allowed. 2.1 As per the facts of the case, the assessee is a Kaccha Aaratiya engaged in selling agriculture produce on behalf of the farmer to the principal buyer. Return of income for the year under consideration was filed in ITR 3, claiming a TDS of Rs. 2,33,682/- under various sections. However while proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income so declared for each nature of receipt on which TDS has been claimed, is lesser than that appearing in Form 26AS, then only CPC may deny the credit of TDS for relevant nature of receipt resultantly. In view of above since the receipt of Interest and commission on which TDS have been claimed under sections 194A and 194H are fully declared in ITR i.e. either with same or higher amount than that appearing in Form 26AS, the entire TDS claimed u/s 194A and 194H deserves to be fully allowed. Hence the proportionate TDS disallowed to the extent of ₹1,79,551/- (₹2,09,560 ₹30,009) i.e. TDS claimed u/s 194Q) is absolutely unjustified and incorrect which deserves to be allowed to the assessee. Therefore, disallowance of TDS to the extent of ₹ 1,79,551/- being incorrect and bad in law may please be directed to be allowed and the assessee prays accordingly. As regards the balance TDS credit of ₹ 30,009/- being TDS u/s 194Q, the assessee humbly submits that the same also deserves to be fully allowed as: Fact that assessee is a Kachaa Arhatiya is duly accepted by CIT(A) (para 6.2.6 page 11 of CIT order). Turnover on which TDS is deducted u/s 194Q is not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for tax by the assessee in his ITR, the TDS deducted both u/s 194H and 194Q deserves to be fully allowed. E. Further the Form 26AS also depicts that the invoices on which TDS have been deducted u/s 194Q also has TDS deducted u/s 194H of the Act. Thus the contention of the assessee that he is merely a kachaa arhatia is potrayed beyond all doubts and needs to be accepted. Further Honble ITAT Jaipur bench vide its order dated 30.04.2024 in ITA no. 192/JPR/2024, on exactly same issue has fully allowed the TDS claimed u/s 194Q by kachaa arhatia . (copy of order duly filed with the bench). Thus the entire TDS claimed by assessee deserves to be fully allowed and the assessee prays accordingly. Alternatively, the assessee also contends that the seller whose goods are facilitated by the assessee are farmers, whose income is exempt u/s 10(1) of the Act. Thus by virtue of clarifications issued by CBDT in its circular no. 13 of 2021 wherein it has been stated as under:- To remove difficulty, it is clarified that the provisions of section 194Q of the Act shall not apply on purchase of goods from a person, being a seller, who as a person is exempt from income tax under the Act (like person ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n view my above discussion, I am of the view that since the receipt of interest and Commission on which TDS has been claimed under section 194A and 194 H are fully declared in ITR, therefore the entire TDS claimed under section 194a and 194 h needs to be fully allowed. Hence the proportionate TDS, disallowed to the extent of rupees 179551, is absolutely unjustified and therefore deserves to be allowed and thus, we order accordingly. 2.7 As regards the balance TDS credit of Rs 30,009/- being TDS under section 194 Q is concerned. In this regard after hearing the parties at length, the Bench found that it is an undisputed fact that Assessee is a Kacha Aaratiya as has already been accepted by learner CIT appeal. Therefore turnover on which TDS is deducted under section 194 Q is not the turnover of the assessee hence has rightly not been shown as such by the assessee. Moreover a kaccha Aaratiya acts only as an agent for his constituent and never acts as principal, therefore the remuneration of Kaccha Aaratiya consists solely of commission and he has no control on the profit and losses made by his constituents. At this stage, the ld. AR has drawn my attention to sample invoices on which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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