2025 (4) TMI 618 - SCH - Income Tax

SC upholds timber classification under Sections 206C(6)/206C(7), dismisses petition for delay and lack of merit

COMMISSIONER OF INCOME TAX (TDS) KOLKATA Versus NIRMAL KUMAR KEJRIWAL

The SC dismissed the Special Leave Petition due to an unexplained delay of 880 days and lack of merit. The petition challenged the application of TCS ... Tax Collection at Source (TCS) - Addition u/s 206C(6)/206C(7) - Tribunal held that Swan timber is different from timber when there is no distinction drawn under Section 206C except in the case of timber obtained under forest lease - HC concluded [2022 (7) TMI 1271 - CALCUTTA HIGH COURT] if the timber is being sized, sawn into logs of different dimensions and shapes in activities carried on saw mills authorised by the Government, it would amount to a different produce. Even in respect of timbers which are procured as described in table, if it is used in the process of manufacturing, the provision of Section 206C(1) of the Act would not be applicable due to the fact that the product ceased to be a forest produce. HELD THAT:- There is a delay of 880 days in filing the Special Leave Petition which has not been satisfactorily explained. Even otherwise, we have gone through the Special Leave Petition and do not find any merit in the same. Special Leave Petition is, therefore, dismissed on the ground of delay as well as on merits. The Supreme Court, with Hon'ble Justices J. B. Pardiwala and R. Mahadevan presiding, dismissed the Special Leave Petition due to an '880 days' delay in filing, which was not 'satisfactorily explained.' The Court also found no merit in the petition itself. Consequently, the petition was dismissed 'on the ground of delay as well as on merits.' Any pending applications were also disposed of.