https://www.taxtmi.com/caselaws?id=773928 Tax collection at source under section 206C(1C) does not extend to compounding fee or fine collected for illegal mining and transportation of minerals under section 23A of the Mines and Minerals (Development and Regulation) Act, 1957 read with rule 71(5) of the Chhattisgarh Minor Mineral Rules, 2015. The provision applies only where tax is collected from a person granted a lease, licence, contract, or transfer of right in a mine or quarry and liable to pay royalty. Because compounding amounts arise from the offence-compounding mechanism and are not royalty, strict construction of the charging provision barred extending TCS by implication. The demand, interest, and penalty were therefore unsustainable. en-us Mon, 16 Jun 2025 00:00:00 +0530 Tue, 14 Jul 2026 16:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773928 Tax collection at source under section 206C(1C) does not extend to compounding fee or fine collected for illegal mining and transportation of minerals under section 23A of the Mines and Minerals (Development and Regulation) Act, 1957 read with rule 71(5) of the Chhattisgarh Minor Mineral Rules, 2015. The provision applies only where tax is collected from a person granted a lease, licence, contract, or transfer of right in a mine or quarry and liable to pay royalty. Because compounding amounts arise from the offence-compounding mechanism and are not royalty, strict construction of the charging provision barred extending TCS by implication. The demand, interest, and penalty were therefore unsustainable. Case-Laws Income Tax Mon, 16 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773928