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2015 (7) TMI 1028 - HC - Income TaxTax Collection at Source (TCS) u/s 206C - import of timber from abroad - assessee-in-default - circumstances under which ss. 44AC and 206C were brought into the statute book about 2 1/2 decades ago and the subsequent deletion of s. 44AC alone, w.e.f. 1st April, 1992; however retaining s. 206C - Held that:- Though 'timber' under specified circumstances was intended to be included under s. 44AC, in the context of fixing presumptive income, it cannot be said that it has lost its significance, on deletion of s. 44AC, as it stands separately covered and dealt with under s. 206C clubbing along with several other items including 'tendu leaves' and 'scrap' for collection of tax at source. In other words, the law makers had independent application of mind with regard to the items, which were to be included under s. 206C, in respect of which tax had to be collected at source at the specified rate, which includes 'timber' as well. This being the position, the contention of the petitioners that the circumstance under which s. 44AC was incorporated and the consequence in furtherance to deletion of the said provision w.e.f 1st April, 1992 is having a bearing with regard to the exigibility of tax to the very same item mentioned in the Table under 206C, is having no merit or significance. Collection of tax at source is discernible under other similar circumstances as well, as referred to hereinbefore. This being the position, the circumstance under s. 44AC was introduced or the consequence of deletion of the said provision w.e.f. 1st April, 1993, cannot have a bearing in non- satisfying the requirement by the concerned dealers under s.. 206C of the Act, in respect of the commodities specified in the 'Table' given under the said provision.For clarity and convenience, rate of tax to be collected is also specified under s. 206C, in respect of the concerned commodities, to be adjusted against the actual tax payable by the buyer under the regular assessment. This being the position, the source from which 'timber' came to the hands of the petitioners does not have any relevance at all, and it very much satisfies the term "obtained by another mode", as envisaged under the relevant provisions of law. The version of the petitioners is that it has to be read and understood giving restrictive meaning referring to the circumstances under which s. 44AC was introduced w.e.f 1st April, 1988, does not hold any water at all. This Court does not find any merit in the writ petitions and no ground raised in support of the same could be held as tenable. - Decided against assessee.
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