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2023 (8) TMI 448 - AT - Income TaxDetermining tax liability liable for making TCS - assessee failed to make either TCS or to file Form no. 27C to concerned CIT within prescribed time limit - interest u/s. 206C(7) levied on tax liability determined u/s. 206C(6) - assessee is engaged in the business of sale of “scrap” - HELD THAT:- In the instant case, the assessee has submitted that the scrap was sold to manufacturers and the sale was not for trading purposes but was made to “manufacturers”, from whom Form 27C / Form 27BA was duly obtained, though, there was delay in obtaining the same. In the case of Chandmal Sancheti v ITO [2016 (8) TMI 952 - ITAT JAIPUR] ITAT has held that no time limit has been prescribed for furnishing Form No.27C by the buyer to the seller, hence, delay in filing declaration shall not be a ground to deny benefit of declaration to assessee. In the case of K.P.G. Enterprise v. ITO [2014 (8) TMI 716 - ITAT AHMEDABAD] ITAT held that Assessee company could not be treated as assessee in default for not collecting TCS from its buyers from whom assessee had received declaration as per section 206C(1A) - where buyers had paid tax on their income and such income had been assessed after taking into consideration purchases made from assessee, tax could not be again collected from assessee on non-collection or short-collection of TCS. Thus in the instant facts it is noted that the Department has not analysed / verified the requisite forms/evidence to support the contention of the assessee that the sale was made to manufacturing concerns and there was no requirement to collect tax at source in respect of such sales, which constituted almost 95% of such sales. Accordingly, in the interest of justice, the matter is being restored to the file of the assessing officer to verify the request documents / Forms to see if the assessee has obtained the request Forms 27C and 27BA etc. and to allow credit for the same in case the same were available with assessee before the assessment got concluded. Appeal of the assessee is allowed for statistical purposes.
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