https://www.taxtmi.com/caselaws?id=784704 The dominant issue was whether sales of cotton waste attracted TCS under s.206C on the footing that it constituted "scrap". The ITAT held that, on a plain reading of the statutory definition, cotton waste used as raw material in open-ended spinning mills is not "scrap" and therefore s.206C is not attracted; the CIT(A)'s denial solely for non-furnishing of Form 27C was treated as a technical lapse in light of HC precedent where such breach was condonable. As the assessee produced buyer declarations regarding end-use, the matter was remitted to the AO to verify that supplies were made to open-ended spinning mills for use as raw material and then allow relief accordingly; the appeal was statistically allowed. en-us Wed, 03 Dec 2025 00:00:00 +0530 Sat, 10 Jan 2026 08:25:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784704 The dominant issue was whether sales of cotton waste attracted TCS under s.206C on the footing that it constituted "scrap". The ITAT held that, on a plain reading of the statutory definition, cotton waste used as raw material in open-ended spinning mills is not "scrap" and therefore s.206C is not attracted; the CIT(A)'s denial solely for non-furnishing of Form 27C was treated as a technical lapse in light of HC precedent where such breach was condonable. As the assessee produced buyer declarations regarding end-use, the matter was remitted to the AO to verify that supplies were made to open-ended spinning mills for use as raw material and then allow relief accordingly; the appeal was statistically allowed. Case-Laws Income Tax Wed, 03 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784704