2025 (2) TMI 1682

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....sed under Section 143(1) vide which a prima-facie adjustment was made. The assessee has claimed TDS refund of Rs. 6,08,108/- which was allowed to the extent of only Rs. 49,628/- and rest was disallowed. 3. With the assistance of ld. Representative, I have gone through the record carefully. Basically the assessee is a 'Kacha Arhatiya'/Commission Agent. She used to buy agricultural produce on behalf of her Principal, namely FCI and other agencies. While making the payments to the farmers, she is required to deduct TDS under Section 194Q at 0.1% on such sum. The assessee claimed refund of that TDS but it was disallowed by way of a prima-facie adjustment. The assessee explained her case to the CIT(A) but ld. CIT(A) failed to appreciate the B....

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....corresponding Vikray parchi' is issued in the Mandi to the respective farmers. So, admittedly, the amount invoiced by the assessee to the principal buyer and the value of goods transferred to assessee from the farmer is same and purely on behalf of its principal. Now, for carrying out such transaction assessee receives commission on which tax is deducted u/s. 194H of the Act. Such commission income is shown as a turnover. To this extent, there is no dispute and the credit of TDS u/s. 194H has been allowed. 7. The point of dispute is for the TDS deducted u/s. 194Q i.e. deduction of tax at source on payment of certain sum for purchase of goods and as per subsection (1) of section 194Q any person being a buyer who is responsible f....

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....gross) has to be considered by for the purpose of income tax u/s. 44AB of the Act. 9. Under these given facts and circumstances, we find that on of the new amendment brought in section 194Q of the Act the 1 of the assessee agent has deducted TDS u/s. 194Q of the Act in addition to section 194H for the commission paid to the assessee and, therefore, the assessee is entitled to credit of tax deducted u/s. 194H as well as sec. 194Q and we further hold that  assessee is not required to disclose the turnover appearing in the tax deduction details u/s. 194Q because he is acting as the Kachcha Arhtia i.e. an agent and the turnover appearing in the sale invoices are merely the sales made against the equal amount of purchase made from ....