" 1 SA.Nos.2 to 7/VIZ./2026 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DB” BENCH : VISAKHAPATNAM AT HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER Stay Application Nos.2 to 7/VIZ./2026 Arising out of आ.अपी.सं /ITA.Nos.164 to 169/VIZ./2026 Assessment Years 2017-2018 to 2019-2020 Andhra Pradesh State Civil Supplies Corporation Limited, Hyderabad. PIN – 500 080. Telangana. PAN AABCA7164R vs. The Income Tax Officer- (TDS), Ward-1, ELURU. PIN – 534 002. And ITO-[TDS], Ward-1, RAJAHMUNDRY-533105 State of Andhra Pradesh. (Applicant) (Respondent) िनधाŊįरती Ȫारा/Assessee by : Shri DV Anjaneyulu, CA राज̾ व Ȫारा/Revenue by : Dr. Aparna Villuri, Sr. AR सुनवाई की तारीख/Date of hearing: 06.03.2026 घोषणा की तारीख/Pronouncement: 06.03.2026 आदेश/ORDER PER VIJAY PAL RAO, VICE PRESIDENT : By way of these 06 stay applications, the assessee is seeking stay against the outstanding demands arising from the Orders passed by the Assessing Officer u/sec.201(1) and Printed from counselvise.com 2 SA.Nos.2 to 7/VIZ./2026 201(1A) of the Income Tax Act [in short \"the Act\"], 1961, for the assessment years 2017-2018 to 2019-2020. 2. The learned Authorised Representative of the Assessee has submitted that the assessee is a Public Sector Enterprise engaged in procurement of paddy from farmers at minimum support price as per the requirement and directions of the State Government as well as Central Government through its procurement supporting centers and agencies like PACS, DCMS and self-help groups etc. The assessee makes payment in respect of the procurement of paddy from the farmers through RTGS. The paddy purchased from the farmers through the paddy procurement centers is sent to the rice mills for processing and thereafter it will be delivered to the assessee and finally to the warehouses as well as to Food Corporation of India. The learned Authorised Representative of the Assessee has submitted that the payment made to the farmers is not subject to TDS. Similarly, the assessee is not paying the transporters. Therefore, the assessee is not liable to deduct the TDS in respect of the payment made to the rice mills which are processing the Printed from counselvise.com 3 SA.Nos.2 to 7/VIZ./2026 paddy. However, the Assessing Officer has held that the assessee is in default of not deducting tax at source. Thus, the learned Authorised Representative of the Assessee has submitted that the demand raised by the Assessing Officer based on the Orders passed u/sec.201(1) and 201(1A) of the Income Tax Act, 1961 may be stayed till the disposal of the appeals filed by the assessee which are listed for hearing on 30.06.2026. He has pointed that more than Rs.12 crores of refund is still lying with the Department right from the assessment year 1980-1981 to 2014-2015 and therefore, the assessee is not required to even deposit 20% of the outstanding demand as required under proviso to sec.254(2A) of the Income Tax Act, 1961. 3. On the other hand, the learned DR has submitted that the payment made by the assessee on account of commission to the agents and transportation charges attracts the TDS provisions u/sec.194H and 194C of the Act, respectively. Therefore, the assessee was under the obligation to deduct TDS in respect of the payments made to the agents Printed from counselvise.com 4 SA.Nos.2 to 7/VIZ./2026 as well as to the transporters. He has thus, contended that the assessee has not made out a case for grant of stay. 4. We have considered the rival submissions and perused the Orders passed by the Assessing Officer u/sec.201(1) and 201(1A) of the Act. The Assessing Officer has held the assessee was in default in deduction of TDS in respect of the payments made to the commission agents for procurement of the paddy as well as transporters for transporting the paddy and rice to the rice mills and the warehouse. Thus, prima facie it appears that the payment made by the assessee towards commission to the agents and to the transporters attracts the TDS provisions u/sec.194H and 194C of the Act respectively. However, the assessee has raised various grounds for challenging the Orders passed by the Assessing Officer which could be considered and decided only in the appeals filed by the assessee. Hence, at this stage, no view can be expressed on the issue of liability of the assessee to deduct the TDS. Accordingly, we grant an early hearing to the assessee and the date of hearing is preponed from the hearing of the appeals 30.06.2026 to 15.04.2026. Printed from counselvise.com 5 SA.Nos.2 to 7/VIZ./2026 Since the date of hearing of the appeals is announced in the open Court and noted by the parties, no separate notice shall be issued in this regard. The parties are directed not to take any adjournment of hearing of the appeals. In the meantime, the Assessing Officer is directed not to take any coercive action for recovery of the outstanding demands till the next date of hearing. The stay applications of the assessee are rejected and early hearing is granted. 5. In the result, stay applications of the assessee are dismissed. A copy of this common order be placed in the respective case files. Order pronounced in the open Court on 06.03.2026. Sd/- Sd/- [MADHUSUDAN SAWDIA] [VIJAY PAL RAO] ACCOUNTANT MEMBER VICE PRESIDENT Hyderabad, Dated 06th March, 2026 VBP Printed from counselvise.com 6 SA.Nos.2 to 7/VIZ./2026 Copy to: 1. Andhra Pradesh State Civil Supplies Corporation Limited, 30, Bhagyalakshmi Nagar Colony, Gandhi Nagar, Hyderabad – 500 080. Telangana. 2&3. The Income Tax Officer-(TDS), Ward-1, Income Tax Office, 23-B-4-6/4, KKS Towers, R R Pet, ELURU. PIN – 534 002. State of Andhra Pradesh. And Income Tax Officer-[TDS], Ward-1, RAJAHMUNDRY. PIN – 533 105. State of Andhra Pradesh. 4. The CIT(A), Hyderabad-11, Hyderabad. 5. The Addl. CIT (Exemptions), Vijayawada. 6&7. The DR, ITAT, “DB” Bench, Hyderabad & Visakhapatnam. 8. Guard file. BY ORDER Printed from counselvise.com VADREVU PRASADA RAO Digitally signed by VADREVU PRASADA RAO Date: 2026.03.06 16:16:50 +05'30' "