2016 (6) TMI 964

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....al'), the revenue has preferred the following appeals: Tax Appeal No. Order date ITA No. Assessment Year 1625 of 2008 30.05.2008 3553/Ahd/2004 2003-04 2397 of 2009 26.06.2009 2491/Ahd/2006 2003-04 759 of 2010 29.10.2009 1214/Ahd/2008 2003-04 1627 of 2008 30.05.2008 3554/Ahd/2004 2003-04 1628 of 2008 30.05.2008 2950/Ahd/2006 2004-05   1.1 The following substantial question of law was raised while admitting the following appeals: Tax Appeal No. 1625 of 2008 Whether the Appellate Tribunal is right in law and on facts in holding that the provisions of Section 194C of the Act are not attracted in respect of payments made by the assessee to Mukamams and Transporters who are members farmers of the Zone Samiti? T....

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....and to transporters in accordance with the provisions of Section 194C of the I.T. Act. Accordingly, the Assessing Officer held that the assessees were responsible for making the payment and not deducting tax on such payments and thereby passed order u/s 201 & 201(1A) of the Act and raised appropriate demand. On appeal preferred by the assessees before CIT(A), the CIT (Appeals) dismissed the appeals and confirmed the order passed by the Assessing Officer. 3. On appeal before the Tribunal by the assessees, by impugned order, Tribunal allowed the appeals and held that the assessees were not liable to deduct tax at source u/s 194C of the Act. Being aggrieved and dissatisfied with the impugned order passed by the Tribunal, the revenue has prefe....

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....ng thereby, here, the supply of sugarcane at the gate of the factories of the assesses is not a separate work contract, but, it is essentially the part of the sell transaction. In that view of the matter, here, it would be relevant to refer to the decision of this Court in CIT (TDS) VS. KRISHAK BHARTI CO OPERATIVE LTD.(Supra). In that case, the assessee was engaged in the manufacture of fertilizers and for the said purpose, it used to consume natural gas. The assessee, therein, was supplied natural gas by different agencies through pipelines. In that case, according to the Revenue, while purchasing the gas from different agencies, the assessee had entered into a work contract for transportation of natural gas from the sellers premises to th....