2023 (2) TMI 746

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....g to each Ground of appeal (see note below) 1 The grounds of appeal mentioned hereunder are without prejudice to one another.   2 The ld. Commissioner of income Tax (Appeals) - 2, Rajkot [hereinafter referred to as the CIT(A)] erred in law as also on facts in confirming AO's action of determining tax liability of Rs. 16,32,300/- by alleging that the appellant is liable for making TCS, which he failed to make either TCS or to file Form no. 27C to concerned CIT within prescribed time limit. The tax liability confirmed is totally unjustified on facts as also in law and may kindly be deleted. 16,32,300/- 3 The ld. CIT(A) erred in law as also on facts in confirming charging of interest u/s. 206C(7) of the Act at Rs.12,40,548....

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....ng the liability of tax collection at source on the assessee despite the fact that he has furnished Form 27C before CIT(TDS)-Jamnagar on 28-08-2015 i.e. before the date of passing order by ITO-TDS indicating that the scrap sale was to specified buyers and it was done complying with the provisions of section 206C(1A) of the Act. Therefore, since the ITOTDS did not consider Form 27C, which was furnished before him during the course of TCS proceedings and before passing of order under section 206C(6) and 206C(7) of the Act, the ITO(TDS) has erred in facts and in law in imposing liability to collect tax at source and imposing consequential interest. 4.1 However, Ld. CIT(Appeals) rejected the arguments of the assessee on the ground firstly that....

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....for the assessee submitted that the Ld. CIT(Appeals) did not take into consideration the Gujarat High Court decision in the case of Siyaram metals 71 taxmann.com 204 (Gujarat) and also the decision rendered by the jurisdictional Rajkot ITAT in the case of G.K. Traders vs ITO 143 taxmann.com 425 (Rajkot ITAT) which have held that where assessee-company sold scrap to various companies and failed to submit a statement in Form 27C comprising of buyer's declaration to prescribed authority in time, since there was no limit provided in section 206C to make a declaration in Form 27C collected from buyers, delay in filing same would not be ground to deny benefit to assessee-company. In response, the Ld. DR placed reliance on the observations mad....