2024 (2) TMI 1167

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....ised by the assessee is against the order of Ld. CIT(A) confirming the imposition of tax by treating the assessee in default for non-collection of tax at source u/s 206C(6)/206C(7) of the Act. 3. First of all we will decide A.Y. 2006-07. Facts in brief are that the assessee is a registered partnership concern and is engaged in trading of tendu leaves. The AO found and observed that the assessee has not collected tax on sale of tendu leaves made to six parties aggregating to Rs. 41,63,024/-. Accordingly a show cause notice was issued as to why the assessee should not be treated as assessee in default for non-collection of tax u/s 206C of the Act. Besides, he was asked to furnish the evidences of filing of the copies of declarations in For....

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....s Section 206C of the Act. However the findings of the Ld. CIT(A) state that that the Circular No. 660 dated 15.09.1993 is not applicable as the provisions of Section 206C of the Act were not applicable to public sector company who effected the sales at the first stage and therefore the assessee is covered under the provisions of section 206C of the Act even in the second stage of sale of tendu leaves. In our opinion the Ld. CIT(A) has wrongly observed that the provisions of Section 206C of the Act were applicable to the assessee even though the assessee has made sale at second stage and the entity involved in the first stage was public sector undertaking. In the present case we also find that the assessee has collected Form no. 27BA as per....