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2024 (1) TMI 546 - AT - Income TaxLiability to collect tax at source (TCS) u/s 206C(6A)/206C(7) - Form No.27C filled belatedly - assessee has sold scrap to various dealers without collecting tax at source and has not received Form No.27C as required u/s 206C(1) - assessee submitted that there is no dispute that assessee has belatedly collected the declaration in Form No.27C and has filed the same before ITO(TDS) - if such declaration is not filed to be prescribed authority within the prescribed time, can the liability of TCS can be fastened on the assessee.? - HELD THAT:- Even if there is a breach on the part of the assessee in not obtaining the declaration from the buyer, the moment the sale is effected and in filing it before the CCIT or the CIT, such breach is to be considered only technical which is liable to be condoned in as much as the main thrust of sub-section 1A of section 206C is to make a declaration as prescribed, upon which, the liability to collect tax at source under subsection (1) would not apply. When there was no dispute about such a declaration being filed in a prescribed format and there was no dispute about the genuineness of such declaration, mere delay in filing the said declaration would not defeat the very claim. CIT (A) has referred to the decision of Hon’ble ITAT Chennai Bench [2023 (6) TMI 166 - ITAT CHENNAI] where form No. 27C was not obtained within a reasonable time and form no. 27BA was collected after lapse of 7 years which is not the facts of the present case. In any case, since the decision of Madras High Court [2010 (12) TMI 1084 - MADRAS HIGH COURT] and Gujarat High Court [2016 (7) TMI 68 - GUJARAT HIGH COURT] and that of ITAT Jaipur Bench [2016 (8) TMI 952 - ITAT JAIPUR] is in favour of the assessee, we are inclined to accept the contention of the assessee and thus this ground in all the three years is allowed.
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