TaxTMI 
TaxTMI 
2017 (8) TMI 1182
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....ed in considering the assessee's claim in respect of declaration in Form 27C which was required to be received at the time of purchase of goods by buyer and copy of declaration should be deposited by responsible person with competent authority on the specified date as required by Rule 37C and the assessee failed to comply with such legal requirement. ii) On the facts and in the circumstances of the case, the ld. CIT(A) has erred in law and fact by giving specific direction on account of demand raised U/s 206C(7) for charging interest violates the provision of Section 206C(7) of the Act." 2. Both the appeals of the revenue are being hearing together, therefore, for the sake of convenience and brevity, a common order is being passed. 3.....
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....Further it is not necessary that such mechanical working (breaking of the ship) should be carried out by the assessee himself. The assessee is, therefore, liable to deduct tax at source U/s 206C of the Act on the sale of scrap. In fact, the admission of the assessee is the best evidence to admit the liability. The assessee himself has admitted that the assessee is dealing in the scrap generated from the breaking of the ship and had purchased the scarp. The contention of the Id AR that since the iron scrap like steel, ingots, iron etc. is being used by the industries without any change, is not correct as the nature of goods shall remain same, therefore, it comes under the definition of the scrap. In our view, the material sold by the assesse....
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....the definition of 'scrap' thereby attracting TCS. Since 'Plates' are part of ship-breaking scrap purchased and sold by the assessee, these would be covered under 'scrap'. This contention of the assessee is therefore not acceptable. Ground 1(c) is accordingly dismissed. 4. Ground 1(b) is against demand u/s 206C(6A)/206C(7) raised by the AO due to non-furnishing of Form no. 27C within prescribed time-limits. The assessee has contended that the ship- breaking scrap is sold to manufacturers who have given declaration in Form No. 27C, even though in the course of TDS proceedings, and hence there should be liability U/s 206C(6A)/206C(7). In support, the assessee has cited decision of ITAT, Jaipur bench (supra) in his own case, wherein it has b....
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....espectfully following the directions of ITAT in the assessee's own case, the AO is directed to verify whether declarations in Form 27C as mandated by sec. 206C(1A), have been filed in the requisite form and to give credit thereof if so filed and thereby recompute the liability u/s 206C(6A) and 206C(7). 5. Ground no. 1(d) is against considering the assessee in default in view of certificates filed in Form 27BA as per Proviso to sec. 206C(6A) stating that the buyer has filed Return of income taking into consideration the amount of purchase price of goods for computing his income and has paid taxes thereon. It is contended by the assessee that the AO has accepted such certificates and has not created liability u/s 206C(6A) in respect of all....
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....'ble ITAT in the assessee's own case for A.Y 2008-09 & 2009-10 also directed the AO to levy the interest after considering the advance tax paid by holding as under:- We have heard the rival contentions of both the parties and perused the material available on the record In our view, the assessee is duty bound to collect the TCS from the buyers in terms of Section 206C of the Act. However, the collection of TCS and deposit of the TCS is only exempted in respect of the cases where the declaration is being filed by the assessee in view of sub-section (I A) of Section 206C of the Act. In view thereof the revenue is only entitled to the recovery of the interest on the unpaid tax amount/deposit/short tax deposited by the buyer. If the ....
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....thereof this ground of the appeal is also allowed for statistical purposes only." 6.3 Respectfully following the order of ITAT, Jaipur bench in appellant's own case, the AO is directed to verify such cases where certificates as per Proviso to 206C(6A) are furnished and if in such cases the advance tax deposited by the buyer is more than the tax required to be deducted by the assessee then in that case no interest u/s 206C(7) should be charged. However, if tax deposited by the buyer is less than the amount to be deposited by the assessee, then the assessee is liable to pay interest up to the month in which the Returns have been filed by the buyers. In such cases, the AO may verify the date when TCS was done by the assessee and the date on....