No TDS on harvesting charges paid on behalf of farmers as agent

Parry Sugar Industries Limited Vs DCIT (ITAT Bangalore) The issue under consideration is whether the disallowance made u/s 40(a)(ia) of the Act for non-deduction of tax at source from the payment made towards Harvesting charges is justified in law? In the present case, the assessee is a company engaged in the business of manufacture of sugar and generation of power. During the relevant year, the assessing officer noted that the assessee has paid Harvesting Charges for the harvesting of sugarcane without deduction of tax at source in both the years. Accordingly, he proposed to invoke the provis...