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Assessee's appeal dismissed for failing to collect TCS under section 206C on illegal mining activities and storage operations. The ITAT Raipur dismissed the assessee's appeal regarding demand under section 206C(1C) and (6)(7) for failure to collect TCS on illegal mining, storage ...
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Assessee's appeal dismissed for failing to collect TCS under section 206C on illegal mining activities and storage operations.
The ITAT Raipur dismissed the assessee's appeal regarding demand under section 206C(1C) and (6)(7) for failure to collect TCS on illegal mining, storage and transportation activities, and failure to deduct TDS on District Mining Fund contributions. The CIT(Appeals) order was upheld as it correctly followed the precedent established in District Mining Officer, Bemetara case, finding no infirmity in the lower authority's decision to hold the assessee in default.
Issues: Appeals against orders passed by Commissioner of Income-Tax (Appeals) regarding liability for TCS under Sec.206C(1C) and (6) & (7) of the Income-tax Act, 1961 for assessment years 2021-22 & 2020-21.
Detailed Analysis:
Issue 1: Liability for TCS on illegal activities The Assessing Officer (A.O) held the assessee liable for not collecting tax at source (TCS) on illegal mining, storage, and transportation under Sec.206C(1C) and (6) & (7) of the Act, raising a demand of Rs. 5,79,001. The CIT(Appeals) upheld the A.O's view citing a previous ITAT order. The CIT(Appeals) dismissed the appeal, stating that the A.O's order was compliant with the law and the ITAT's decision. The ITAT affirmed the CIT(Appeals)'s decision, finding no infirmity, and upheld the order.
Issue 2: Liability for TCS on District Mining Fund (DMF) contributions Regarding the contribution towards DMF, the A.O directed verification of whether the appellant received contributions towards DMF from leaseholders. If the leaseholders paid directly to DMF, no TCS was required. However, if the appellant received contributions, TCS was necessary. The CIT(Appeals) followed the ITAT's order and directed the A.O accordingly. The ITAT upheld the CIT(Appeals)'s decision, considering the issues were covered by the ITAT's earlier order.
Conclusion: The ITAT dismissed the appeals, upholding the CIT(Appeals)'s decision, as the issues were already addressed in a previous ITAT order. The ITAT found no reason to deviate from the earlier findings unless there were changes in law or new evidence. The appeals were dismissed for both assessment years 2021-22 and 2020-21 based on the previous ITAT order's applicability to the present cases.
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