TaxTMI 
TaxTMI 
2016 (3) TMI 281
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....ely. 3. Grievances raised by the Assessing Officer, which are common in both the years, are as follows: 1. The learned CIT(A) gas erred in law and on facts in deleting the additions made under section 206C(1) of the Income Tax Act on account of non collection of TCS on sale of scrap, and interest charged under section 206C(7) in spite of the fact that the assessee was a trader of scrap and the provisions of section 206C(1) apply to the assessee. 2. The learned CIT(A) has erred in law as well as on facts in issue of direction in violation of proviso to sub section (7) of Section 206 C of the IT Act, that the interest should be caluculated only in respect of those buyers who have not paid tax due on the returned income whereas interest should be calculated in cases of all the buyers who have filed form no. 27BA as provided in above section. 3. The learned CIT(A) has erred in law as well as on facts in directing not to treat the assessee in default for non collection of TCS on sale of scrap to manufacturer where form 27C has not been filed with the department, even though the same were filed inordinately late and after the detection of default by the department. 4. The lea....
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.... used discarded item made by item is not generated from any manufacturing activity nor mechanical working or materials traded. 5. The learned CIT(A), as well as learned ITO, has erred in law and on facts while working out the figure of sale of discarded items at Rs. 11,63,40,150 (AY 10/11) and Rs. 4,35,22,374 (AY 11/12) as well as TCS @ 1% amounting to Rs. 11,63,401 (AY 10/11) and Rs. 4,35, 223 (AY 11/12) under the provisions of section 206C of the Act. 6. The learned CIT(A), as well as learned ITO, has erred in law and on facts while working out the interest chargeable under section 206C(7) of the Act 6. Briefly stated, the relevant material facts, as necessary for adjudication on these appeals, are as follows. The assessee is engaged in the business of trading in recycled non ferrous metal such as brass scrap, copper scrap, zinc scrap, lead scrap and other metal scrap. The assessee imports scrap material, containing copper zinc or brass, from different countries, and sells the same in the domestic market. The assessee was subjected to a TDS compliance survey on 2nd December 2010. During the course of this survey, it was noted that the assessee has sold scrap of Rs. 11,63,....
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....by the assessee. The Assessing Officer is aggrieved and is in appeal before us. 9. Having heard the rival contentions, and having perused the material on record, we find that the issue is squarely covered by the special bench decision of this Tribunal, in the case of Bharti Auto Products (supra), wherein the Tribunal has, inter alia, held as follows: 42. We shall now turn to additional ground no. 3. At the time of hearing, our attention was also drawn to the first proviso inserted in sub-section (6A) of section 206C with effect from 1.7.2012 according to which any person, other than a person referred to in sub-section (1D) of section 206C, responsible for collecting tax in accordance with the provisions of this section, who fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee shall not be deemed to be an assessee in default in respect of such tax if such buyer or licensee or lessee (i) has furnished his return of income under section 139; (ii) has taken into account such amount for computing income in such return of income; and (iii) has paid the tax ....
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....CS for clarifying the deemed date of discharge of tax liability by the buyer or licensee or lessee. These amendments will take effect from 1st July, 2012. 44. First Proviso inserted in sub-section (6A) of section 206C seeks to achieve three-fold objectives. One, it seeks to (1) ensure that there is no loss to the Revenue, i.e., (i) the buyer has furnished his return of income u/s 139, (ii) the buyer has taken into account such sum on which tax was required to be collected at source u/s 206C for computing income in such return of income, (iii) the buyer has paid the tax due on the income declared by him in such return of income, (iv) the payer, i.e., the person responsible for collecting the tax at source u/s 206C, has furnished a certificate in Form No. 27BA confirming the aforesaid; (2) rationalize the provisions relating to collection of tax at source; (3) provide relief to the collector of tax at source from the consequences of non/short deduction collection of tax at source and to that extent it is a beneficial provision. In the aforesaid background, the issue that arises for consideration is whether the first proviso to section 206C(6A) is applicable to pending matters a....