TMI Blog1998 (3) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 206C of the Income-tax Act. On behalf of the petitioners it is contended that the Division Bench of this court in Gian Chand Ashok Kumar and Co. v. Union of India [1991] 187 ITR 188, declared that L-13 licensees fell within the purview of section 44AC, therefore, the tax at source in so far as the purchases made by them were concerned, should not be deducted and that judgment applies on all fours to the present petitioners. In opposition to this, the learned Advocate-General has urged that the aforesaid judgment of the Division Bench of this court has no relevance since section 44AC itself was deleted and as the Supreme Court in Union of India v. A. Sanyasi Rao [1996] 219 ITR 330, has sustained the constitutionality of section 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, therefore, the provisions of sub-section (1) of section 44AC do not apply to them. Section 44AC was deleted by the Finance Act, 1992, with effect from April 1, 1993. The deletion of section 44AC had resulted in certain minor consequential amendments to section 206C, which after omitting the immaterial parts reads as under : "206C. (1) Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage, specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son from whom the amount has been collected and credit shall be given to him for the amount so collected on the production of the certificate furnished under sub-section (5) in the assessment made under this Act for the assessment year for which such income is assessable... Explanation.---For the purposes of this section,--- (a) 'buyer' means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,--- (i) a public sector company, (ii) a buyer in the further sale of such goods obtained in pursuance of such sale, or (iii) a buyer where the goods are not obtained by him by way of auction and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot to collect the income-tax at source under section 206C of the Act, in view of the judgment delivered in the month of March, 1990, in the case of Gian Chand Ashok Kumar and Co. v. Union of India [1991] 187 ITR 188 (HP). This document in any way does not support the case of the petitioners as already stated by us supra. Gian Chand Ashok Kumar and Co.'s case [1991] 187 ITR 188 (HP) concerns the applicability of the proviso to section 44AC and the Division Bench of this court has rightly decided the case taking into consideration the facts and circumstances of the case. After the deletion of section 44AC, Gian Chand Ashok Kumar and Co.'s case [1991] 187 ITR 188 (HP) has absolutely no relevance in judging the legality as to deduction of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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