2022 (11) TMI 418

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....sions of section 206C is applicable on traders of scrap. 2. The ld. CIT(A) has erred on facts and in law in upholding the order of the assessing officer and rejected the claim of Assessee that provision of Sec. 206(C) shall not be applicable to the assessee as it was his first year of audit and TDS/TCS shall applicable to individual only if accounts are audited in immediate preceding year. Addition made for TCS on Scrap of Rs. 268248. 3. The Ld. CIT(A) has erred by levy of interest U/s 206C(7) of Rs. 222646 of the IT Act for the above issues." 3. The assessee is engaged in the business of supply of Iron Bara, MS Steel, Building Materials, MS Plate and other Ferrous and non- Ferrous Metals. The assessee filed return of income which ....

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....e appeal of the assessee. 5. The Ld. A.R. submitted that there is on delay of 483 days in filing the present appeal for which the assessee has filed affidavit of the assessee thereby stating that the assessee was on medical treatment and was recovering during the period and could not file the appeal within stipulated time. The Ld. D.R. oppose the condonation of delay. 6. Heard both the parties. The assessee has explained the delay and the delay appeared to be genuine, therefore, the delay is condoned. 7. The Ld. A.R. submitted that TCS is not applicable on the sale of scrap as the assessee is not in the manufacturing activity and act as trader. AS per Section 206C of Tax Collection Act source the person is liable to collect tax at ....

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....re is no requirement that the goods to be liable for scrap should be produced/manufacture of the seller itself. 8. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). The Ld. D.R. submitted that the assessee sold scrap during the year under consideration and had not collected TCS on the same and as per the decision of the Special Bench of the Tribunal in case of Bharti Auto Product vs. CIT (2013) 92 DTR 345 Explanation (c) to Section 206C that the word "seller" does not require that the seller of scrap must himself generate such scrap and therefore, such a requirement cannot read into the section. 9. Heard both the parties and perused all the relevant material available on record. It is undisputed fact that the ....