AI Drafter 
TaxTMI 
TaxTMI 
2024 (5) TMI 104
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.... 2. The assessee has taken the following grounds of appeal:- "(1) That on facts, and in law, the learned CIT(A) has grievously erred in holding that the appellant is liable for collection of TCS u/s 206C of the Income-tax Act, 1961. (2) That on facts, and in law, it ought to have been held that the appellant's business is not covered by the definition of "scrap", as defined in Section 206C of the Act, and hence the appellant is not deemed to be an assessee in default within the meaning of the said Section. (3) That the learned CIT(A) has grievously erred in law and on facts in confirming the order of ITO- TDS whereby the appellant is treated in default u/s 206C and demand of Rs. 3,07,689/- is raised u/s. 206C(1....
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....om these persons as per law. Further, with respect to 17 parties, the assessee furnished Form 27 BA and submitted that in view of proviso to Section 206C(6A), since the respective parties had filed return of income, the amount of demand with respect to these entities from whom Form 27BA has been obtained, is liable to be reduced. The Ld. CIT(Appeals) held that so far as furnishing of Form 27C from 5 parties is concerned, the transaction which is under consideration had taken place in Financial Year 2011-12, whereas the assessee had furnished Form 27C during the course of appellate proceedings in January 2017, which is almost after a period of 5 years after the sale had taken place, and therefore such late deposit of Form 27C is not acceptab....
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....ecessary verification to ascertain whether these parties have paid taxes in terms of Section 206C of the Act. Secondly, with respect to balance 5 parties in respect of which the assessee submitted Form 27C, it was submitted before us that Section 206C(1A)/(1B) of the Act does not specify any time limit within which the aforesaid Form 27C have to received from the concerned purchasers. Accordingly, since in the instant case the assessee submitted Form 27C as soon as it received the same from the purchasers of scrap and further, since the genuineness of these Forms have not been doubted by the Department, the CIT(A) erred in not admitting the same during the course of appellate proceedings. The Counsel for the assessee relied on judicial prec....
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...... (1A) Notwithstanding anything contained in sub-Section (1), no collection of tax shall be made in the case of a buyer, who is resident in India, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed Form and verified in the prescribed manner to the effect that the goods referred to in column (2) of the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things or for the purposes of generation of power and not for trading purposes. (1B) The person responsible for collecting tax under this Section shall deliver or cause to be delivered to the Principal Chief Commissioner or Chief Commissioner or P....
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.... by him from the purchaser to whom scrap had been sold. In the case of Siyaram Metal Udyog (P.) Ltd 71 taxmann.com 204 (Gujarat), the Gujarat High Court held that Section 206C(1A) itself does not provide for any time limit within which declaration of buyers in prescribed Form 27 for non-collection of TCS is to be made. The main thrust of sub-Section (1A) of Section 206C is to make a declaration as prescribed, upon which liability to collect tax at source under sub-Section (1) would not apply; when there was no dispute about such a declaration being filed in a prescribed Format and there was no dispute about genuineness of such declaration, delay in filing said declaration would not make assessee liable for non-collection of TCS. In the case....