DCIT, TDS, Chandigarh V. M/s Punjab Agro Food Grains Corp. Ltd., Sangrur

ITA 76/CHANDI/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0337 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 24-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: RAMAN AGGARWAL
• Keywords: Rule of consistency
• Section: 194C

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NOS. 75 & 76/CHD/2018 / ASSESSMENT YEAR S: 2012-13 & 2013-14 THE DCIT (TDS), CHANDIGARH VS. M/S PUNJAB AGRO FOODS GRAINS CORP LTD., MEHLAN ROAD, SANGRUR ./TAN NO: PTLP10660G / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. RAMAN AGGARWAL, ADVOCATE ' ! / REVENUE BY : SH. MANJIT SINGH, SR.DR # $ % /DATE OF HEARING : 20.11.2018 &'() % / DATE OF PRONOUNCEMENT : 20.11. 2018 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEALS HAVE BEEN PREFERRED BY THE REVE NUE AGAINST THE SEPARATE ORDERS DATED 27.11.2017 OF THE COMMISSIONE R OF INCOME TAX (APPEALS), PATIALA [HEREINAFTER REFERRED TO AS CI T(A)]. 2, IN THIS APPEAL, THE REVENUE HAS TAKEN THE FOLLOW ING GROUNDS:- (I) HAS THE LD. CIT (A) NOT ERRED IN IGNORING THE LEGAL POSITION THAT THE PROVISIONS OF SECTION 194C ARE SQUARELY APPLICA BLE ON THE WORK CARRIED OUT BY THE MILLERS WHO ARE UNDER CONTR ACT WITH THE PROCUREMENT AGENCY/ASSESSEE ? (II) HAS THE LD. CIT(A) NOT ERRED IN NOT UPHOLDIN G THE TAX DEMAND CREATED ON ACCOUNT OF NON / SHORT DEDUCTION OF TAX U/S 201(1)/201(1A) OF THE INCOME-TAX ACT, 1961 IGNORING THE FACT THAT THE ASSESSEE DEDUCTOR APPLIED PROVISIONS OF SECTION 194C ON THE CASH PART OF THE PAYMENTS BUT NOT ON THE PAYMENTS B UT NOT ON THE PAYMENTS WHICH WERE MADE IN KIND? ITA NOS. 75 & 76/CHD/2018- M/S PUNJAB AGRO FOOD GRAINS CORPORATION LTD.., SAN GRUR 2 (III) HAS THE LD. CIT(A) NOT ERRED IN LINKING THE FACTS OF PRESENT CASE WITH THE CASE OF AHAAR CONSUMER PRODUCTS PVT. LTD. WHEREIN THE HON'BLE ITAT, BENCH 'A', NEW DELHI FINDS THAT - ' I T IS JUST AN EXCHANGE AND BARTER OF ONE COMMODITY AGAINST THE OT HER AND THE WHOLE CONTRACT CANNOT BE TERMED AS WORKS CONTRACT.' (IV) HAS THE LD.CIT(A) NOT ERRED IN LINKING THE J UDGMENT OF HON'BLE ITAT, BENCH 'A', NEW DELHI IN THE CASE OF M/S AHAAR CONSUMER PRODUCTS PVT. LTD., WITH THE FACTS OF THE PRESENT C ASE WHEN THE CASE OF M/S AHAAR CONSUMER PRODUCTS PVT. LTD,, DID NOT I NVOLVE ANY PAYMENT OF CONSIDERATION FOR THE SERVICES RENDERED WHEREAS IN THE PRESENT CASE EXECUTION OF WORK UPON SUPPLIED MA TERIAL IS IN LIEU OF PAYMENTS ON WHICH TDS HAS ALSO BEEN DEDUCTE D BY THE ASSESSEE? (V) HAS THE LD.CIT(A) NOT ERRED IN HOLDING THAT T HE ASSESSEE HAS NOT PAID ANY SUM EXCEPT MILLING CHARGES @RS,15/- PER QU INTAL) TO THE MILLERS GIVEN THAT THE MILLING CHARGES PAID IN CASH ARE NOT ADEQUATE REMUNERATION FOR THE SERVICES OBTAINED UND ER CONTRACT, AND THAT THE MILLERS HAVE COMPLETE CONTROL OVER THE BYPRODUCT RETAINED BY THEM WHICH SHOULD THUS CONSTITUTE INCOM E OF THE RECIPIENT AS HELD BY THE HON'BLE SUPREME COURT IN M /S KANCHANGANGA SEA FOODS LTD VS. COMMISSIONER OF INCO ME TAX IN ITS ORDER DATED 07.07.2010 ? (VI) HAS THE LD.CIT(A) NOT ERRED IN IGNORING THE JU DGMENT OF THE HON'BLE SUPREME COURT IN M/S KANCHANGANGA SEA FOODS LTD VS COMMISSIONER OF INCOME TAX IN ITS ORDER DATED 07.07 .2010, WHEREIN THE HON'BLE COURT HAS UPHELD THE APPLICABLE OF TDS PROVISIONS EVEN IF THE PAYMENT MADE IS NOT IN CASH ? 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER DATED 30.10.2018 PASSED ON THE ISSUE I N THE GROUP CASES WITH A LEAD CASE ITO (TDS) VS. THE DISTT. MANAGER, M/S P UNJAB WAREHOUSING CORPORATION, SIRHIND & OTHERS IN ITA NOS. 1309 & 1310/CHD/2016 AND HAS STATED THAT THE ISSUE RAISED IS SQUARELY COVERE D BY THE AFORESAID DECISION OF THE TRIBUNAL. 4. THE LD. DR HAS STRONGLY RELIED UPON THE FINDINGS OF THE ASSESSING OFFICER. ITA NOS. 75 & 76/CHD/2018- M/S PUNJAB AGRO FOOD GRAINS CORPORATION LTD.., SAN GRUR 3 5. WE FIND THAT THE AFORESAID DECISION OF THE TRIBU NAL DATED 30.10.2018 (SUPRA) IN THE GROUP CASES WITH A LEAD CASE IN ITA NOS. 1309 & 1310/CHD/2016, RELIED UPON BY THE ASSESSEE, HAS R ECENTLY BEEN DELIVERED BY THIS BENCH OF THE TRIBUNAL (BENCH CONSISTED BY B OTH OF US), HENCE, FOLLOWING THE PRINCIPLE OF CONSISTENCY, THE PRESENT APPEALS OF THE REVENUE ARE DECIDED ACCORDINGLY AND ISSUE IS DECIDED IN FAV OUR OF THE ASSESSEE BY HOLDING THAT THE ASSESSEE WAS NOT LIABLE TO DEDUCT TDS ON THE BYE-PRODUCTS OF PADDY GIVEN TO THE MILLERS FOR MILLING. BOTH THE APPEALS OF THE REVENUE ARE THEREFORE, DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.11.2018 SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 20.11.2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR