TaxTMI 
TaxTMI 
2018 (11) TMI 940
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....urce as per the provisions of section 206C of the I.T.Act. Accordingly, the Assessing Officer passed order u/s 206C, making the assessees liable for tax and interest. The details of the tax liability and interest liability in the case of M/s.Excellent Timber Imports & Exports Private Limited reads as follows:- Asst.Year Tax collectible u/s 206C(1) (Rs.) Interest u/s 206C(7) (Rs.) Total (Rs.) 2010-2011 2,64,249 1,41,336 4,05,585 2011-2012 4,66,923 2,15,936 6,82,859 2012-2013 4,18,898 1,20,371 5,39,269 2013-2014 93,350 13,454 1,06,804 2014-2015 6,85,965 35,239 7,21,204 2.1 The details of tax liability u/s 206(1) and interest liability u/s 206C(7) in the case of M/s.Excel Timbers Private Limited, reads as follows:- Asst.Year Tax collectible u/s 206C(1) (Rs.) Interest u/s 206C(7) (Rs.) Total (Rs.) 2010-2011 5,90,469 3,28,637 9,19,106 2011-2012 10,26,349 4,20,594 14,46,943 2012-2013 12,04,417 3,72,772 15,77,189 2013-2014 11,99,483 2,29,365 14,28,848 2014-2015 21,88,551 1,45,046 23,33,597 2.2 It was submitted that the above orders passed u/....
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....s mandated under Rule 37C of the I.T. Rules and declarations countersigned by the Chartered Accountant, and hence assessees were not liable for TCS by virtue of section 206C(1A) of the Act and proviso to section 206C(6A) of the Act. It was submitted that grounds were taken before the CIT(A) that assessees are not liable for TCS by virtue of section 206C(1A) and proviso to section 206C(6A) of the I.T. Act. However, the CIT(A) without adjudicating the above grounds, dismissed the appeals of the assessees ex parte following the Single Bench judgment of the Hon'ble High Court of Kerala in the case of Excel Timber Pvt. Ltd. vs. DCIT & ITO(TDS) (supra). The relevant portion of the affidavit stating the reasons for non-furnishing of Form 27C declarations and declarations countersigned by the Chartered Accountant reads as follows:- "7. When the appeals filed by the Appellants - as well as other assesses identically placed who were represented by a common Auditor - were posted for hearing by the Appellate Authority, it was pointed out that the Writ Appeals were in the process of being heard. However, without considering the said request, the Appellate Authority, as per orders dated....
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.... evidence. 4.2 The learned Departmental Representative supported the assessment order and the order of the CIT(A). 5. We have heard the rival submissions and perused the material on record. We find an identical issue was considered by the Tribunal in assessees sister-concerns (supra). In the above said orders of the Tribunal, the additional evidence filed was taken on record and case restored to the A.O. to consider whether the assessee was liable for tax collection at source u/s 206C of the I.T.Act. The relevant finding of the Tribunal in the case of assessees sister-concerns, reads as follows:- "8. We have heard the rival submissions and perused the material on record. Admittedly, there was a survey u/s. 133A of the Act in assessee's business premises on 20/01/2014. In the course of survey, it was noticed that the assessee had not collected tax at source with regard to sales made locally out of imported timber. The Hon'ble High Court had decided that the assessee is liable to collect tax at source under the provisions of section 206C of the Act on sales made locally out of imported timber. The only plea of the assessee in these cases are that by virtue of provision....
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....the root of the issue as regards non-liability of the assessee for TCS as mentioned u/s. 206C(1A) of the Act and proviso to section 206C(6A) of the Act. When these declarations are vital piece of evidences as regards the issue of liability of the assessee u/s. 206C of the Act, in the interest of substantial justice and equity, we are of the view that the same needs to be admitted as additional evidences and we admit the same on record. 8.2 When the additional evidences are taken on record, the same necessarily needs to be examined by the Assessing Officer and for above stated purpose, the entire issue is restored to the file of the Assessing Officer. The assessee shall prove with necessary material/evidences that it is not liable for TCS by virtue of provisions of section 206C(1A) of the Act and proviso to section 206C(6A) of the Act (with effect from 1.7.2012). 8.3 As regards the time limit mentioned for furnishing Form No. 27C declaration (Section 206C(1B) of the Act), we are of the view that in order to get the benefit u/s. 206C(1A) of the Act, filing of Form No.27C declaration as mandated under Rule 37C of the I.T. Rules is mandatory, however, the time for fur....