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2020 (1) TMI 159 - AT - Income TaxTCS u/s 206C(1) in respect of scrap sale - assessee treated in default for non-deduction of tax, passed order U/s 201(1)/201(1A) - HELD THAT:- As in the case of Shri Azizbhai A. Lada Vs ITO [2018 (1) TMI 1554 - ITAT AHMEDABAD] wherein trading of scrap was not held to be liable to deduction of tax U/s 206C(1) - No merit in the order of the A.O. treating the assessee in default for non-deduction of tax U/s 206C(1) of the Act in respect of scrap sales affected by him during the year under consideration Levy of penalty u/s 271CA of the Act for default in collecting tax at source u/s 206CA - HELD THAT:- Assessee has nowhere substantiated its claim for not liable to deduct the tax on the plea of sale of such scrap to the manufacturer/ processor of articles or things for the purpose of generation of power and not for trading purposes. Further the assessee has not filed Form No. 27 to the Chief Commissioner or Commissioner in terms of Section 201(1)/201(1A) of section 206C of the Act. It was not the case of the assessee that he was selling the scrap generated out of ship trading. Thus the nature of scrap business was not fully substantiated by the assessee so as to bring it out of mischief of section 206C(1) of the Act. - Restore the matter back to the file of the AO for deciding the issue afresh in the light of judicial pronouncement discussed hereinabove and also assessee is required to file the nature of scrap sold by him whether it is to be utilized by manufacturer or producer of articles and not for trading purposes. Both the appeals of the assessee are allowed for statistical purposes.
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