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2022 (11) TMI 418 - AT - Income TaxTCS on Scrap - Provisions of section 206C as applicable on traders of scrap - whether CIT(A) has erred upholding the order of AO and rejected the claim of Assessee that provision of Sec. 206(C) shall not be applicable to the assessee as it was his first year of audit and TDS/TCS shall applicable to individual only if accounts are audited in immediate preceding year? - HELD THAT:- It is undisputed fact that the assessee is not a manufacturer and the scrap which was sold by the assessee was not from the manufacturing activity. The decision of the Special Bench in case of Bharti Auto Product [2013 (9) TMI 274 - ITAT RAJKOT] was observed that scrap means wasted which is definitely not usable as it is. Scrap might have been bought and sold. Scrap might have arisen due to manufacturing activity which is sold. Whatever it may be, it is a fact that the assessee had the scrap for sale. In the present assessee’s appeal the assessee has taken reliance on the Circular 18 dated 21.05.2012 was not considered by the Special Bench of the Tribunal. But from the perusal of the said Circular which later issued by the CBDT it is stated that there is no requirement that the goods to be eligible for scrap should be produced/manufacture by the seller itself. In present assessee’s case the assessee has not filed prescribed Form 27C thereby exempting the seller to collect tax under Section 206C - Assessing Officer as well as CIT(A) has rightly made tax liability including interest under Section 206C - There is no need to interfere with the findings of the CIT(A). Hence, appeal of the assessee is dismissed.
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