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2013 (9) TMI 268 - AT - Income TaxTax Collection at Source (TCS) u/s 206 C on Dead Rent/Royalty - assessee in default - Held that:- lease/license was granted by the District Magistrate on behalf of the State Government for mines and quarries against consideration. May be the TAN is issued in the name of District Mining Officer, is not relevant to avoid liability to collect TCS by the District Magistrate. Considering the above facts, noted by the assessing officer and confirmed by the District Mining Officer that leases/licenses have been granted by the District Magistrate, would clearly prove that the District Magistrate, Jhansi is liable to collect TCS in the facts and circumstances of the case. - Decided against the assessee. The amount payable or the amounts received are the important factors which shall have to be taken into consideration at the time of collection of TCS. The above provision, therefore, would not be restricted to the amounts paid or payable on account of specified terms. It may be anything and as such it would also apply against the amount payable or paid on account of dead rent/royalty. Whatever name is given in the agreement of mining, the same is payable by the licensee to the District Magistrate and upon that the District Magistrate is required to collect TCS as per above provisions. Whether dead rent was to be paid in advance or royalty was to be paid after start of business are not relevant criteria to deal with the provisions of section 206C(1C) of the IT Act. - Decided against the assessee. The assessee is also liable to pay interest u/s 206(6A) of the Income Tax Act, which has been brought on the statute w.e.f. 01.04.2007 - Since the assessee was responsible for collecting tax and failed to do so in accordance with the provisions of law, therefore, for the failure of assessee to collect the tax, the assessee would be liable to pay tax to the credit of the Central Government in accordance with law. Therefore, quoting a wrong provision would not be relevant for the purpose of deciding the issue. Same view is taken by ITAT, Agra Bench in the case of Agra Development Authority v. ACIT [2012 (10) TMI 887 - ITAT AGRA] – Decided against the Assessee. Double deduction of TCS from the assessee, when the leasee/lincencee has already paid tax - Held that:- Reliance has been placed upon the Hon’ble Karnatka High Court judgment in the case of Sree Manjunatha Wines v. CIT [2011 (9) TMI 254 - KARNATAKA HIGH COURT], wherein it has been held that If in a given case the assessee has not collected the tax from the buyer and if the buyer has paid tax to the revenue, the revenue is not deprived of the tax which is legitimately due to them. - The assessee submitted before the AO that all the licensees are assessed to Income-tax, but no evidences have been filed before the AO for payment of taxes - Restored the issue to the file of AO with direction to assessee to substantiate that all the payments of taxes have been made by the licensees/lessees referred in all the assessment years under appeals with proper evidence of payments by the licensees or lessees in question and the AO on verification of the same shall decide the issue in accordance with law by giving reasonable and sufficient opportunity of being heard to the assessee - Decided partly in favor of assessee.
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