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2017 (8) TMI 1287 - AT - Income TaxWhether Credit of TDS and TCS is allowed to assessee, collected on behalf of the mining department - Rejection on basis that such credit is to be given in the hands of the lessees of the Mines. - Held that:- There is no ambiguity so far as the provision of law is concerned under section 206C(1C) of the Act mandate every person, who grants a lease or licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any mine or quarry, to another person, other than a public section company for the use of such mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipts of such amount from the licensee or lessee in cash or by the issue a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract for lease of the nature specified u/s 206C(1C). Admittedly, the assessee does not fall in the category mentioned here in above neither the assessee is a licensee or lessee nor the assessee is given contract to use the mines for business. However, it is not clear whether the individuals who had paid the excess royalty also claimed credit of tax collected at source. The case of the assessee is that it deposited amount at the instance of the Mining Department, Government of Rajasthan and the said department issued the certificate in favour of the assessee. Thus the issue is restored to the file of AO to verify, whether any other individual claimed credit of tax on the payment of excess royalty, if not then the claim of the assessee may be allowed, in the interest of justice, as the Revenue is not legally entitled to withhold such tax, which is deposited by a wrong person. However, the Revenue would be at liberty to claim tax liability if any arising out of such transaction from the appropriate person. Appeal of the assessee is allowed for statistical purposes.
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