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2023 (2) TMI 746 - AT - Income TaxTCS on sale in terms of section 206C - trading of non-ferrous metal scrap - failure to submit the form 27C within the time prescribed - assessee contended that assessee was not liable to collect TCS for the reason that the items sold by the assessee was not “scrap” within the definition of clause (b) of Explanation to section 206C - HELD THAT:- We observe that in the case of GK traders [2022 (7) TMI 1380 - ITAT RAJKOT] has held that where assessee-company sold scrap to various companies and failed to submit a statement in Form 27C comprising of buyer's declaration to prescribed authority in time, since there was no limit provided in section 206C to make a declaration in Form 27C collected from buyers, delay in filing same would not be ground to deny benefit to assessee-company. As in the case of CIT (TDS) vs Siyaram Metal Udyog (P.) Ltd [2016 (7) TMI 68 - GUJARAT HIGH COURT] has held that no time limit is provided in section 206C(1A) to make a declaration in Form 27C collected from buyers; mere minor delay in furnishing Form 27C would not make assessee liable for non-collection of TCS. Thus since the assessee had furnished Form 27C before CIT (TDS)-Jamnagar, though belatedly and had also sought to place the same on record during the course of TCS proceedings before the ITO (TDS), the same should have been considered by him at the time of passing of order. Accordingly, in the interests of justice, the matter is being restored to the file of ITO (TDS) take into consideration Form 27C furnished by the assessee and pass order in accordance with law. Accordingly, the appeal of the assessee is allowed for statistical purposes.
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