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2018 (10) TMI 602 - AT - Income TaxDefault in collecting tax at source (TCS) - scrap sales - levy of interest u/s 201(1A)/206C(7) - Period of limitation - validity of SCN - scope of the term "Scrap" and "buyer" - the assessee is a dealer and not a manufacturer. It purchases scrap from various manufacturers and then carries out sorting of the scrap in different forms like copper, iron, plastics and PVC etc. and then sell the same in retail to various persons. Held that:- so long as the show-cause as well as the final order states clearly the applicable provisions i.e, 206C(6)/206C(7) of the Act, merely the fact that in addition to relevant provisions, it makes a mention of additional provisions 201(1)/201(IA), the same will not make the proceedings invalid Even though there are no specific limitation provisions prescribed in Section 206C of the Act, however, the present proceedings under section 206C can be reasonably guided by the limitation provisions as contained in Section 201(3) of the Act. Admittedly, the Revenue has also not disputed the applicability of Section 201(3) of the Act as apparent from the assessment order. Given that there is no specific finding of the AO or the ld CIT(A) on the aspect of limitation, the matter is set-aside to the file of the ld CIT(A) for the limited purposes of determination whether the present proceedings are barred by limitation as prescribed under section 201(3) of the Act in light of above discussions and the legal propositions so laid down in the decisions referred supra.
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