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2022 (7) TMI 1380 - ITAT RAJKOTTCS u/s 206C(1) - default for not collecting tax at source on sale of scrap - assessee had not submitted Form 27C comprising of the buyer's declaration to the Commissioner of Income-tax in time - HELD THAT:- As perused the material on record in the case of Siyaram Metal Udyog (P.) Ltd. 2018 (5) TMI 1093 - GUJARAT HIGH COURT] AO made addition on the ground that the assessee had breached section 206C of the Income-tax Act, 1961 in case of sale of scrap and that the assessee had not submitted Form 27C comprising of the buyer's declaration to the Commissioner of Income-tax in time. The Tribunal held that there is no dispute about the fact that the assessee has 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. 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 (5) TMI 1093 - GUJARAT HIGH COURT] held that where in case of assessee, a dealer in scrap, AO levied interest and tax in terms of section 206C(7) on account of non-collection of tax source, in view of fact that asssessee had submitted certificates provided by buyers under sub-section (1A) if section 206C before appellate authorities, impugned order passed by A.O. was to be set aside Further, in the case of Chandmal Sancheti [2016 (8) TMI 952 - ITAT JAIPUR] held that no time limit is provided in section 206C(1A) to make a declaration in Form 27 collected from buyers; hence delay in filing declaration shall not be ground to deny benefit of declaration to assessee. In light of the above judicial precedents on the subject, in the interests of justice, we are restoring the matter to the file of the Ld. Assessing Officer to decide the issue de novo after giving due opportunity of hearing to the assessee to present his case on merits. Appeal of the assessee is allowed for statistical purposes.
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