TaxTMI 
TaxTMI 
2018 (2) TMI 93
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....will be applied for all the assessment years. 2. The only issue to be decided in these appeals is as to whether the assessee could be said to have violated the provisions of section 206C of the Income-tax Act, 1961 (hereinafter referred to as the "Act") in the facts and circumstances of the case. 3. The brief facts of this issue are that the AO observed that the assessee is proprietor of M/s. Arvind Traders, who is engaged in the business of trading of timber who did not collect any tax u/s. 206C(1) of the Act on sale of 'Timber obtained by any other mode other than under a forest lease'. Accordingly show cause letters were issued to the assessee to explain his position along with supporting documents as to why he should not be treate....
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....held that the assessee's claim that items being sold are not timber has no force and, therefore, he observed that there is no material to show that the AO's order needs to be varied and, therefore, he dismissed the appeals of the assessee. Aggrieved, the assessee is in appeals before us by raising the similar grounds for the AYs. 2010-11 to 2012-13. 4. We have heard rival submissions and gone through the facts and circumstances of the case. At the time of hearing before us, the Ld. Counsel for the assessee submitted that the issue is squarely covered in favour of the assessee by the coordinate bench decision in assessee's own case filed by the revenue in ITA Nos. 249 to 253/Kol/2013 for AYs 2005-06 to 2009-10 dated 06.04.2016. On the oth....
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....hased by him to another party while such timber is lying in the Corporation depot. No sawing or conversion of timber is to be permitted in the depot premises under any circumstances what so ever. This particular restrictive covenant in the tender document for timber proves that the term timber is different from sawn timber. 6.1. We find that when timbers are sawed out of logs or big size of timber, what is produced is a different thing for different uses. A new kind of commodity is manufactured because sawn timber made out of timber is not timber in its nascent state. We find that when a person cuts a tree, he gets timber. The said timber is sawed and cut into various sizes and kept in rectangular shape in order to make it....
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.... the provisions of section 206C of the Act would not be applicable to the assessee. 6.4. We find that the Learned CIT(A) had given a categorical finding that the sawn timber were sold by the assessee to the persons who were engaged in manufacturing and processing furniture and such other products. Hence the assessee's case falls under the exception provided in provisions of section 206C(1A) of the Act. This categorical finding given by the Learned CIT(A) is not controverted by the revenue before us. 6.5. We find that the Hon'ble Calcutta High Court in the case of Shaw Bros. and Co vs The State of West Bengal reported in 1963 14 STC 878 Cal dated 26.6.1963, wherein it was held that :- 5. In my opinion, the observat....