2015 (4) TMI 1042

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....61. (2) Ld. CIT(A) has erred in law and facts by deleting the demand raised by A.O. on account of non-deduction of tax at source u/s 201(1)/194J and interest payable u/s 201(1A) of the I.T. Act, 1961." 2. Both the grounds of the appeal are directed against the order of the Ld CIT(A) against deleting of demand created on account of non deduction of tax U/s 201(1) and interest payable U/s 201(1A) of the Act. The ITO (TDS) observed that the assessee made payment to Executive Engineer, Rajasthan State Agriculture Marketing Board (in short the RSAMB), Dausa for construction at Rs. 74,80,179/-. Besides this, the assessee deductor had made contribution of Rs. 11,83,3309/- @ 10% to RSAMB, Jaipur. The contribution paid to RSAMB and the funds fo....

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....o had allowed the appeal by observing as under:- "4.3 I have considered the case and submission filed by the AR. I am included to agree with the submission of the AR that so far as the payment to RSAMB for construction related work is concerned there is no contractor-contractee relationship. I rely on the finding of my ld. Predecessor in the case of KUMS, Bharatpur for A.Y. 2009-10 in appeal No. 369/09-10 where the appeal has been allowed after making the following observations-" I have carefully perused the case and written submission submitted by AR and found that there is no contractor-contractee relationship as the Agricultural Marketing Board is parental body of the Krishi Upaj Mandi Samiti. The Krishi Upaj mandi Samiti is required t....

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....a fees for professional or technical services within the meaning of section 194J of the Act. I rely on the findings of my ld. Predecessor in the case of KUMS, Bharatpur for A.Y. 2009-10 in appeal No. 369/09-10 where the appeal has been allowed after making following observations. "I have carefully perused the facts and submissions of the AR and found that the contention of the AR has force as the RSAMB is not a professional but a Rajasthan State Organization and as the Agriculture Marketing Board is parental body of Krishi Upaj Mandi Samiti and the payment made to RSAMB is only contribution made for the improvements of agriculture markets in the state and not in the nature of professional or Technical services. The legal position has bee....