2018 (8) TMI 651

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....acts and hence, the same may please be quashed. 2. The Id. AO erred by not serving on the assessee, show cause notice before framing huge demand of Rs. 1,64,186/- for non-collection of TCS u/s 201(1) and Rs. 1,10,759/- for interest on non-collection of TCS u/s 201(1A) and the Ld. CIT (A) erred in sustaining the same. 3. The ld. AO erred in law as well as on the facts of the present case in holding that the assessee is liable for collection of TCS in terms of section 206C of the Act and the ld. CIT(A) erred in confirming the same. 4. The ld. AO failed to appreciate that the buyers were assessed to tax and as such, in view of decision of Hon'ble Supreme Court in Hindustan Coca-Cola there would be no recovery of the tax on the same su....

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....1,10,759/- totaling to Rs. 2,74,945/-. 4. The assessee challenged the action of the Assessing Officer before the ld. CIT(A) but could not succeed. 5. Before us, the ld AR of the assessee has submitted that the assessee raised an issued in ground No. 2 that the Assessing Officer has grossly erred in ignoring the proviso to Section 201(1) inserted by the Finance Act, 2012 as well as the provision to Section 206C(6A) whereby if the purchaser has furnished his return of income U/s 139 of the Act and has taken into account such amount for computing income in such return of income and has paid the taxes due on income declared by him then the assessee cannot be held as the assessee in default. The ld AR has referred to the ground No. 2 raised be....

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....k of the record of the Assessing Officer/CIT(A) for adjudication on merits. 6. On the other hand, the ld DR has relied upon the orders of the authorities below and submitted that the ld. CIT(A) has followed the decision of this Tribunal on the merits of the case wherein it was held that the sale of scrap to a dealer falls in the ambit of Section 206C of the Act. 7. Having considered the rival submissions as well as relevant material on record at the outset, we note that the assessee raised this issue that the purchaser have considered these amounts in their books of account and also paid due taxes in ground No. 2, which is reproduced by the ld. CIT(A) at page No.2 in para 4.2 as under: "Learned A.O. also grossly erred in ignoring the pr....