TMI Blog2023 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... mps and fancy of the assessee. In the present case, the assessee could not even obtain declaration in Form 27C within the reasonable time and claimed to have obtained said form at the time of assessment proceedings. Therefore, we are of the considered view, that there is no error in the reasons given by the AO and the CIT(A) to reject the claim of the assessee and made additions towards short collection of TCS and interest thereon. Alternate plea of assessee in the second round of proceedings before the CIT(A) and argued that the assessee is able to collect declaration in Form no. 27BA in terms of provisions of section 206C(6A) and rule 37J of I.T. Rules, 1962, where the Accountant has certified that the purchasers have filed the return of income - No doubt, if the buyer furnished a certificate from the accountant in terms of section 206C(6A) of the Act r.w.r. 37J(1) of the IT Rules, 1962, then the assessee shall not be treated as an assessee in default, but fact remains that said exercise should be done by the assessee within the reasonable time. In this case, the assessee claims to have obtained Form no 27BA on 24.04.2021, after seven years from the end of relevant asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound 5 The Ld. CIT erred in holding that, that form 27C are not genuine and the sales reflected in the documents are not reliable at all. Ground 6 The Ld. Commissioner of Income Tax (Appeals) erred in not admitting the evidence in the form of form 27C on the purported ground that, the said form 27Cs are not genuine. Ground 7 The Ld. CIT (Appeal) ought to have appreciated that, the sales of appellant are duly reflected in his accounts and that the purchasers have also duly accounted for the same. The CIT (A) erred in rejecting the evidence as not genuine without any examination of the customers of the appellant. Ground 8 The Ld. CIT (A) failed to appreciate that there is no time limit for obtaining the form 27C from the customer but prescribed time limit only for submission of the same by the assesse to Department. Further, even if there is any delay in filing by the assesse, the same does not lead to liability under section 206C. Ground 9 The Ld. Commissioner of Income Tax (Appeal) failed to appreciate that, the appellant is not an assesse in default particularly when it has received the form 27C from the purchasers. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from the purchaser only after sales, which clearly violate the Sec.206C of Income tax Act, 1961. Hence the assessing officer has passed the order by raising the default amount of Rs.38428/-along with interest u/s 201(1)/201(1A) of Rs.13066/-. In this regard, the assessee company files appeal against the order passed by this office before the Commissioner of Income Tax (Appeals) Madurai and the same was dismissed. Subsequently the assessee company preferred appeal before Income Tax Appellate Tribunal, Chennai and the same has been remitted back to the assessing officer for redo fresh assessment. Consequently, the case has been reposted for hearing on various dates. In response the authorized representative Shri. P .Selvaraj,CA appeared and furnished the details in connection with the submission of Form No.27C for non-collection of Tax. In view of provisions of section 206C says that Sec.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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee preferred an appeal before the CIT(A). Before the ld. CIT(A), the assessee has filed detailed written submissions on the issue, which has been reproduced in para 3 of page 6 to 11 of Ld. CIT(A) order. The sum and substances of arguments of the assessee before the CIT(A) are that, there is no time limit prescribed for filing of Form 27-C and even if said Form has been filed during the course of assessment proceedings, the AO is required to admit and decide the issue. The ld. CIT(A), after considering relevant submissions of the assessee and also taken note of various facts rejected arguments of the assessee and sustained additions made by the AO towards computation of TCS and relevant interest u/s. 206C of the Act. The Ld. CIT(A), had also rejected alternate claim made by the assessee in light of Form no. 27BA, on the ground that said Form needs to be filed electronically before the end of relevant financial year. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 6. The Ld. Counsel for the assessee, submitted that there is no time limit prescribed for filing Form 27C and in case the assessee had made available said Form to the Assessing Officer before compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through orders of the authorities below. There is no dispute with regard to the fact that the assessee neither collected TCS from the buyer on specified goods at the time of sale or receipt of money from said buyer, nor obtained declaration in specified form as per section 206C(1A) of the Act. The assessee claims to have filed Form 27C as required u/s. 206C(1A) of the Act, at the time of assessment proceedings and argued that there is no time limit for filing said form and even in a case where said forms are filed before completion of assessment, the AO is required to consider the issue. We find that, as per provisions of section 206C(1) of the Act, 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, collect from the buyer TCS as per prescribed rate and sell the goods specified u/s. 206C(1) of the Act. From the above, it is very clear that it is the duty of the seller to recover TCS at the time of sale or receipt of money or obtain declaration in Form 27C from the buyer of goods. Further, as per sub-section (1B) of section 206C, the person respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 37J of I.T. Rules, 1962, where the Accountant has certified that the purchasers have filed the return of income. We find that first of all, the appellant has taken an alternate plea in second round of litigation in light of Form no 27BA from the Accountant, in terms of section 206C(1A) of the Act and rule 37J of IT Rules, 1962 dated 24.04.2021. In our considered view, as per provisions of section 206C(1A), and proviso provided therein, if the buyer has furnished his return of income u/s. 139(1) of the Act, and has taken into account such amount for computing income in such return of income and has paid the tax due on the income declared by him in such return of income and also furnishes a certificate to this effect from an accountant in such form as may be prescribed, then the assessee shall not be treated as an assessee in default in respect of such tax. No doubt, if the buyer furnished a certificate from the accountant in terms of section 206C(6A) of the Act r.w.r. 37J(1) of the IT Rules, 1962, then the assessee shall not be treated as an assessee in default, but fact remains that said exercise should be done by the assessee within the reasonable time. In this case, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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