2023 (7) TMI 984

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....section 206C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2012-13. 2.1. The brief fact of the case is that the assessee is an individual and engaged in the business of trading of brass scarps. During the Financial Year 2011-12, the assessee sold scrap of Rs. 4,28,43,222/- to various manufacturers for which declaration in Form No. 27C was collected. However the assessee filed the same belatedly on 01-09-2015 before Commissioner of Income Tax, Jamnagar. However the Assessing Officer issued a show cause notice dated 18-08-2015, 01-06-2016 that the assessee has not collected TCS to the tune of Rs. 4,28,432/- sale of scraps for the for the relevant Assessment Year 2012-13 and assesse....

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....s liable for making TCS, which he failed to make. The tax liability confirmed is totally unjustified on facts as also in law and may kindly be deleted. 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. 3,25,608/-. The interest levied on tax liability determined u/s. 206C(6) is totally unjustified on facts as also in law and may kindly be deleted. 4. Your Honour's appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of the appeal. 4.1. Ld. Counsel Shri Mehul Ranpura appearing for the assessee submitted before us a Paper Book which contains copies of Form 27C belatedly filed by the assessee befo....

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....tion (1A) of section 206C does not provide for any time limit within which, such declaration is to be filed by the buyer. However time limit is prescribed in Rule 37C of the I.T. Rules. The Hon'ble Gujarat High Court in the case of CIT (TDS) Vs. Siyaram Metal Udyog Pvt. Ltd. in Tax Appeal Nos. 510 to 526 of 2016 vide judgment dated 27/06/2016 held that when there was no dispute about the declaration being filed in prescribed Form 27C and there was no dispute about the genuineness of such declaration, mere minor delay in filing the said declaration would not defeat the very claim made by the assessee and thereby dismissed the Revenue appeal observing as follows: "......6. Section 206C of the Act pertains to profits and gains from th....

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.... 8. Thus, in terms of the explanation clause (aa) any person who purchases the goods in retail sale for personal consumption would not be included within the definition of term 'buyer'. It is therefore, that under sub section (1A) of section 206C, calculation of tax under sub-section 1 would not be made, if the buyer furnishes to the person responsible for the tax a declaration in writing in prescribed form declaring that the goods in question are to be utilized for the purposes of manufacturing process or producing articles or things or for the purpose of generation of power and not for trading purposes. The declaration to be made in sub-section (1A) of section 206C thus would enable the Revenue authorities to, as and when the ne....