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2016 (7) TMI 68 - HC - Income TaxNon collection of TCS on sale of scrap - addition made u/s.206C(1) - interest charged u/s.206C(7) - ITAT delted the addition - Held that - In terms of the explanation clause (aa) any person who purchases the goods in retail sale for personal consumption would not be included within the definition of term buyer . It is therefore that under sub section (1A) of section 206C calculation of tax under subsection 1 would not be made if the buyer furnishes to the person responsible for the tax a declaration in writing in prescribed form declaring that the goods in question are to be utilized for the purposes of manufacturing process or producing articles or things or for the purpose of generation of power and not for trading purposes. The declaration to be made in subsection (1A) of section 206C thus would enable the Revenue authorities to as and when the need so arises make proper verifications. This subsection itself does not provide for any time limit within which such declaration is to be made. The time limit of course would be found in Rule 37C of Income Tax Rules 1962. The main thrust of subsection 1A of section 206C thus is to make a declaration as prescribed upon which the liability to collect tax at source under subsection (1) would not apply. When there was no dispute about such a declaration being filed in a prescribed format and there was no dispute about the genuineness of such declaration mere minor delay in filing the said declaration would not defeat the very claim. The Tribunal therefore viewed such delay liberally and in essence held that there was substantial compliance with the requirement of filing the declaration. - Decided against revenue
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