2018 (1) TMI 751

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....wo questions of law, for our consideration: "(a) Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in holding that the provisions of Section 194C of the Income Tax Act are not attracted in respect of payments made by the Assessee to Mukadams and Transporters? (b) Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in holding that the Bakshish paid to the harvesting and transport contractors directly by the assessee sugar factory is made on behalf of the sugarcane grower farmers when the Assessee itself kept Bakshish on the same pedestal with commission, having paid to the same set of contractors?" 3 Re. Question (a): (a) Respond....

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....ccount while making contractual payments to farmers for supply of sugarcane at the RespondentAssessee's factory. Further, no deduction was separately claimed in respect of payments made to harvesting and transport contractor; (c) Being aggrieved, Respondent carried the issue to the Tribunal. The Tribunal in the impugned order at paragraph 8.1, records as under: "From the various details furnished by the assessee in the paper book as well as the findings given by the Ld. CIT(A) we find as per clause (3) of the agreement between the farmers and the assessee company, (a copy of which is placed at paper book page 117 and 118 and English Translation in page 114), it is the responsibility of the farmer to harvest and transport the....

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....ny TDS on such a payment can arise. These findings of fact are not shown to be perverse and/or arbitrary in any manner; (e) Further, on an identical facts, the Gujarat High Court in CIT (TDS) v/s. Khedut Sahakari Khand Udyog Mandli Ltd., 76 taxmann.com 117 as held that there is no liability to deduct the tax at source on payments made to Mukadam and Transport Contractor for supply of sugarcane to sugarcane factories. The SLP filed by the Revenue has also been dismissed by the Apex Court.Nothing has been shown to us to justify/ warrant taking a view different from that taken by Gujarat High Court in Khedut Sahakari Khand Udyog Mandli Ltd., (supra); (f) Mr. Walve, learned Counsel for the Revenue places reliance upon the order dated 18th....