TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 1380
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....tax (Appeals)-NFAC has erred in law and on facts in conforming the order of the ITO-TDS-I, Rajkot holding that the appellant-assessee was in default u/s 206C(1) read with sub-sections (6) and (6A) and of the Act for not collecting tax at source of Rs. 19,44,877 on sale of scrap and consequently also erred in confirming the levy of interest of Rs. Rs, 13,07,620/- u/s 206C (7) of the Act. 2. The Commissioner of lncome-tax (Appeals)-NFAC has erred in confirming the order of the ITO-TDS-I, Rajkot holding that the appellant-assessee was in default, merely for the reason that the Form 27C prescribed in Rules was not submitted by the appellant- assessee to the office of CCIT/CIT within the prescribed time limit by failing to appreciate that submi....
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.... before Ld. CIT(Appeals), wherein it contended that merely because the assessee could not submit form 27C within stipulated time cannot lead to the inference that he is an "assessee-in - default". Further, the assessee had submitted Form 27BA (issued by chartered accountant) which evidences that these buyers have filed return of income and in such a return of income they have reflected the purchases from the assessee and further paid income tax due on the returned income. Further, he submitted that AO has erred in holding that non-submission of Form Number 27C in prescribed time was a mandatory requirement of law, by ignoring the jurisdictional judicial precedents on the subject. The Ld. CIT(Appeals) dismissed the appeal of the assessee wit....
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.... prove its contention and did not provide any materials to contradict AO's contention. Now, appellant cannot claim that adequate opportunity of being heard has not been accorded to it as it failed to prove its contention at 3 stages namely during (i) during TDS spot Survey stage, (ii) Post TDS Survey enquiry stage and (iii) finally during appellate stage. Accordingly after duly considering assessee's submission and taking a note of factual matrix of the case, AO's action in treating it as assessee in default of TCS and raising following demand is hereby sustained." 4. Before us, the counsel for the assessee submitted that the assessee company did not collect TCS under the bona-fide belief that assessee purchasing parties were ....
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....belatedly submitted relevant Form No. 27C collected from its buyers. The same were placed on record before the Assessing Officer itself who declined to accept the same in view of delay in submission thereof. There is no issue qua genuineness of these Forms. The co-ordinate Bench decision of Tribunal in case of Bharti Metals already holds that such a belated submission of relevant Form is a procedural lapse only. The Revenue is unable to point any distinction on facts or law therein. Thus, the Gujarat High Court held that addition with the aid of section 206C could not be made. In the case of CIT vs. Chhaganbhai K Sanghani, [2018] 94 taxmann.com 459 (Gujarat High Court) held that where in case of assessee, a dealer in scrap, AO levied intere....