https://www.taxtmi.com/caselaws?id=447550 The Madras HC held that penalty under Section 271CA for failure to collect tax at source under Section 206C was not applicable to the petitioner operating bars on contract/license basis. The court determined that empty bottles left by consumers could not be considered scrap from mechanical working of materials as contemplated under Section 206C. The petitioner neither owned the bottles nor generated scrap through manufacturing or mechanical working activities. Opening/uncorking bottles by consumers was not mechanical working of materials. Since Section 206C was inapplicable, provisions under Sections 206CC, 206CCA, and interest under Section 206C(7) were also not attracted. The writ petition was allowed. en-us Fri, 22 Dec 2023 00:00:00 +0530 Fri, 03 May 2024 10:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447550 The Madras HC held that penalty under Section 271CA for failure to collect tax at source under Section 206C was not applicable to the petitioner operating bars on contract/license basis. The court determined that empty bottles left by consumers could not be considered scrap from mechanical working of materials as contemplated under Section 206C. The petitioner neither owned the bottles nor generated scrap through manufacturing or mechanical working activities. Opening/uncorking bottles by consumers was not mechanical working of materials. Since Section 206C was inapplicable, provisions under Sections 206CC, 206CCA, and interest under Section 206C(7) were also not attracted. The writ petition was allowed. Case-Laws Income Tax Fri, 22 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447550