TaxTMI 
TaxTMI 
2019 (10) TMI 252
X X X X Extracts X X X X
X X X X Extracts X X X X
....r the other. We accordingly proceed ex parte against the assessee. All these appeals are taken up for adjudication on merits. 2. It emerges that assessee / appellant's instant five appeals suffer from identical 341 days delay in filing. He has placed on record its condonation petition dated 29.03.2017 explaining reasons thereof to various administrative and financial approvals to be obtained from the District Magistrate Burdwan involving financial obligation, the West Bengal Assembly Election schedule announced by the Election Commission of India on 04.03.2016 to 21.05.2016, necessary administrative followup thereafter, relevant amendment in West Bengal Mines concession rules and on-line tender process, various administrative transfers, puja vacation in October, 2016 etc. to plead that the above stated delay is attributable to circumstances beyond his control. The Revenue is fair enough in not rebuting all these averments supported by the necessary press note(s) as well as appellant / assessee's duly sworn affidavits. Hon'ble apex court's landmark decision COLLECTOR, LAND ACQUISITION VS. Mst. KATIJI (1987) 167 ITR 471 (SC) settled the law long back that the case of substa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent year(s) (supra). 4. The CIT(A) has affirmed the Assessing Officer's action vide his following detailed discussion:- "2. Grounds of Appeal: Aggrieved by the said decision dated 22.01.2015 the appellant preferred on appeal on the following grounds: "1) That Ld. AO has erred in real fact. 2) That A. O. is not justified to reject prayer for waiving default amount, because it purely a State Government concern and there has no tax collection from parties and the entire amount will be paid from Government from her own fund and after it will be the huge loss of State Government. 3) That the appellant craves leave to add to, alter, amend, modify, substitute, delete and/or rescind all or any of the grounds of appeal on or before the final hearing if necessary. 11 3. Discussions and Findings; The present appeal is for the assessment year 2010-11, but the facts and issues are identical for five assessment years against which appeals have been filed and are being disposed off along with this appeal. The default on the part of the appellant had occurred over five assessment years: 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... office was not aware of such a provision and there had been no instruction or orders from within their department to effect such a collection. * That the appellant had in fact, accepted the position of the revenue and started collecting TCS from the financial year 2013-14 after the aforesaid meeting. The AO, held that ignorance of law could hardly be considered a reason for non-compliance, of statutory provisions especially by an appellant that itself was part of the government and that the provisions of the statute could not be made subject to circulars/instructions etc. from superior authorities of any deductor/collector. He then proceeded to hold that since the appellant was responsible for the deduction of TCS in respect of the said payments and for its deposition in the government treasury, and had failed to do either, the appellant falls within the section 206C(1C) of the Act and was also liable to pay simple interest at the specified rates for the failure to collect and pay tax so collectible from source. During appeal proceedings, the appellant reiterated his stand that he was ignorant of the said provisions and had received no instructions from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....horities' action raising the impugned TCS demands in the former case. Learned departmental representative vehemently contended during the course of hearing that this assessee had been exercising very important function of TCS collection since acting as the licencor of mines and minerals side (supra) and therefore, he cannot plead ignorance of statutory provisions requiring TCS collection in the Act. Our attention has been invited to the assessee's categorical explanation in the lower proceedings that the state government had not issued any instructions regarding TCS collection in case of receipts coming from mining companies. We find merit in learned departmental representative's argument in principle. There is hardly any dispute that legislature has prescribed TCS collection u/s. 206(1C) @ 2% regarding mining and quarry lincence or lease etc., at the time of receipt of the specified sums. We therefore observe that the mere fact that the state government had not issued any instructions to the field authorities regarding compliance of the impugned statutory provision does not carry any merit since ignorance of law by either the government or its agency is exercising various statutor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ad inserted a similar proviso in sec. 201(1) of the Act by the very Finance Act, 2012 with effect from 01.07.2012 that an assessee shall not be treated as a prayer assessee in default for not deducting TDS in case the other party / payee has furnished in return of income u/s. 139 taking into account the sum in question for computing income followed by payment of taxes dues thereupon as accompanied by certificate to this effect from the accountant concerned. We wish to observe here that sec. 201 applies in case of TDS deduction as against the impugned reverse mechanism of TCS collection. The above former limb applies in case of payer / assessee acting as TDS deductor and latter one comes into play in an instance of a specified recipient receiving the specified payments from the payer. In other words, the purpose of both these mechanism is to ensure compliance of the provision at the time of payment of the specified sums. 8. The legislature had instituted the aforesaid proviso in the Act vide Finance Act, 2012 with effect from 01.07.2012 in sec. 201(1) of the Act to be applicable in case of TDS deductor at the time of his assessment u/s. 40(a)(ia) vide second proviso inserted by t....