2015 (9) TMI 1623

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.... law in upholding the order passed by the Id. ITO(TDS) under section 206C(6A)/ 206C(7) of the Act by wrongly applying the provisions of section 206C(1C) of the Act, as the said provisions are not applicable in the case of the appellant. 2. BECAUSE, amount collected by the appellant by way of Tehbazari, Tehbazari-Vahan Stand and Balu- Morang, Gitti- Bolder-Vahan Shulk could not be treated as amount collected towards use of 'parking lot' or 'toll plaza' so as to make obligatory for the appellant to collect tax at source (TCS) from its licenses. 3. BECAUSE, collection made by the appellant, could at best be treated to be akin to Octroi" which does not invite the provisions of TCS and view to the contrary as has been taken....

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....ct on 3.5.2012 and it was noticed that there were three kinds of auctions (i) Tahbazari, (ii) Tahbazari - Vahan stand & (iii) Balu - Morang and Gitti boulder - Vahan Shulk. Zila Panchayat has issued license to different persons (through tender and auction) for collection of Tahbazari etc. The Assessing Officer was of the view that the amount collected by Zila Panchayat falls under and within the scope of TCS. The Assessing Officer worked out the amount of short collection and amount of the interest u/s.206(7) of the Act as under: I 6. When the Assessing Officer asked the assessee, the assessee agitated the proposal to treat collection of the amount falling within the scope of TCS. It was explained that the licenses were issued for collec....

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....bility of the assessee to collect tax u/s.206C(1C), this section lays down as under: "(1C) Every person, who grants a lease or a licencee or enters into a contractor or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee") for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any othe....