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2004 (11) TMI 23 - HC - Income TaxAuthority to pass an order u/s 206C - Applicability of provision of section 206C – Seller fails to collect the tax - slight lacuna in the provisions, such as absence of specific authority empowered to pass an order under section 206C - agricultural income – forest produce - petitioner-corporation was obligated to collect tax from the buyers of timber and other forest produce at the rates specified under section 206C of the Act. Therefore, the first respondent initiated proceedings proposing to treat the petitioner-corporation as an assessee deemed to be in default and to collect the tax which it failed to collect - when there is an obligation on the part of the seller as contemplated under section 206C in respect of the items specified therein, the seller has to collect the tax and remit to the Central Government – however, if the income of the petitioner-corporation is accepted as agricultural income and exempted from tax, the question of applying the provision of section 206C of the Act, would not arise.
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