2016 (6) TMI 1206

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....A) of the Income tax Act. 3. Brief facts of the case are that the assessee is engaged in manufacturing of sugar and trading. A survey under section 133A of the Income tax, 1961 was conducted at the office premises of the assessee on 27.2.2004. According to the AO, the assessee was responsible for lifting the sugarcane from the fields of farmers, therefore, it must have incurred transportation charges and the assessee failed to deduct TDS on payment of transporting expenses for the sugarcane. He passed an order under section 201 and calculated the amount of TDS deductible by the assessee at Rs. 46,66,999/-. Since the assessee has not deducted the TDS and not made any payment, he calculated the interest under section 201(1A) of the Income Ta....

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....ng that the assessee was liable under Section 194C to deduct tax from the payments made by the farmer's Samiti in respect of various expenses including labour charges, transport charges, insurance charges etc. on behalf of farmers?" 7. The Hon'ble Gujarat High Court has recorded the following finding: "9. Heard, learned Counsels for the parties and perused the material on record as well as the orders passed by the learned CIT(A) and the Tribunal. It is an admitted position that in the case on hand the assesses-cooperative societies used to purchase the sugarcanes from the farmers, on condition that the farmers shall supply the same at the gate of their respective factory. Meaning thereby, here, the supply of sugarcane at the gate of the ....