https://www.taxtmi.com/caselaws?id=473137 Tax collection at source under Section 206C(1C) of the Income-tax Act, 1961 does not apply to compounding fees collected from persons engaged in illegal mining or transportation without a lease or licence. The provision requires a lease, licence, contract or transfer of a right or interest in a mine or quarry. Compounding payments for offences are penal and distinct from royalty under lawful mining arrangements. Related tax demands, interest and consequential penalties cannot be sustained. Judicial discipline requires adherence to a coordinate-bench decision addressing the same statutory provisions and receipts. en-us Thu, 26 Feb 2026 00:00:00 +0530 Wed, 04 Nov 2026 19:03:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=473137 Tax collection at source under Section 206C(1C) of the Income-tax Act, 1961 does not apply to compounding fees collected from persons engaged in illegal mining or transportation without a lease or licence. The provision requires a lease, licence, contract or transfer of a right or interest in a mine or quarry. Compounding payments for offences are penal and distinct from royalty under lawful mining arrangements. Related tax demands, interest and consequential penalties cannot be sustained. Judicial discipline requires adherence to a coordinate-bench decision addressing the same statutory provisions and receipts. Case-Laws Income Tax Thu, 26 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=473137