2015 (11) TMI 1263

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e in deleting the order passed u/s.201 (1) of the I.T. Act of Rs. 40,16,418/- and interest charge under section 201 (1A) of the I.T. Act of Rs. 23,29,522/- even though the decision relied upon by the CIT(A) i.e. Navin Flourine International Ltd. is not applicable to the facts of this case as products in the both the cases are well distinguishable." 2. Assessing Officer on verification of case records found that during A.Y. 05-06 assessee had made sales of scrap worth Rs. 35,79,69,613/-. However, no document/papers leading to collection of tax at source on sale of scrap and payment thereof to the credit of Central Government account and or production of certificate in Form No.27C. According to Assessing Officer, assessee was under obligat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pported the order of CIT(A). 2.2 After going through rival submissions and material on record, we find that assessee is engaged in ship breaking business and has made sale of goods amounting to Rs. 47,40,27,431/-. During year under assessment, the sale includes finish goods recovered from ship breaking activity and trading goods. Assessing Officer has treated the total sale of goods as scrap within meaning of Section 206 of the Act and on that basis, he has passed the order inter alia stating that assessee has failed to deduct tax collected at source u/s.206C of the Act and liable to pay penalty of Rs. 40,16,418/- u/s. 201(1) of the Act and interest of Rs. 23,29,522 u/s. 201(1A) of the Act. The provision of Section 201 of the Act reads a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ch, 2011." As per assessee, assessee has collected and paid TCS on following type of items of sales during the year. "1. ARTICLES OF IRON & STEEL WIRE ROPES 2. WASTE & SCRAP OF CASTIRON 3. WASTE & SCRAP OF COPPER 4. WASTE & SCRAP OF IRON & STEEL 5. WASTE & SCRAP OF STAINLESS STEEL 6. WASTE & SCRAP, OF NICKET 7. WASTE&SCRAPOFGM, GUM, COP, GER.ALU.PRO" Assessee has not collected TCS on following type of items sold during the year: "1. Old & used plates 2. Non-excisable (exempted) like furniture, wood, etc. 3. Trading of scrap (melting) 4. High seas sale " We find that ITAT 'B' Bench, Ahmedabad in ITA Nos. 1213 and 1214/Ahd/2010 dated 15.02....