https://www.taxtmi.com/caselaws?id=386156 Section 206C(1A) grants only a narrow exemption from tax collection at source where the buyer furnishes the prescribed declaration and uses the goods for manufacturing, processing or producing articles or things, not for trading. Drying, sprinkling, bundling, weathering and preservation of Tendu leaves were treated as market-preparatory or preservative steps that did not amount to processing in the statutory sense, and the burden of proving exemption lay on the claimant. Even on an alternative view of some processing, the activity remained trading in Tendu leaves rather than use in own manufacture, so the exemption was unavailable and tax at source remained payable. en-us Thu, 19 Sep 2019 00:00:00 +0530 Mon, 22 Jun 2020 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386156 Section 206C(1A) grants only a narrow exemption from tax collection at source where the buyer furnishes the prescribed declaration and uses the goods for manufacturing, processing or producing articles or things, not for trading. Drying, sprinkling, bundling, weathering and preservation of Tendu leaves were treated as market-preparatory or preservative steps that did not amount to processing in the statutory sense, and the burden of proving exemption lay on the claimant. Even on an alternative view of some processing, the activity remained trading in Tendu leaves rather than use in own manufacture, so the exemption was unavailable and tax at source remained payable. Case-Laws Income Tax Thu, 19 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386156