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2016 (5) TMI 871 - AT - Income TaxNon collection of TCS from Toll Plaza - TCS u/s 206C(1C) - determination of amount payable - whether TCS was to be deducted on amount payable by the concessionaire was only Re. 1/- per year - Held that:- On plain reading of section 206C, it leaves no room for doubt, that the quantum of the amount on which the tax is to be collected at source by the seller has to be only that amount which is to be paid to the seller as price at the time of sale and cannot by any stretch of reasoning be held to include that amount which has not been recovered or paid directly to the seller. Later on by an insertion of sub-section (1C) the toll plaza has also been included. Therefore, by the insertion of toll plaza, isco facto the term “seller” is to be read in that context also. In the light of the discussion made herein in a situation when the concessionaire has retained the toll fees collected and the said concessionaire was under obligation to make the payment of Re.1/- annually to NHAI then on this very very minimal as well as insignificant amount the provisions of section 206C(1C) cannot be applied because it is not practicable. As far as the doubts raised by the Revenue Department that the deposits made in the escrow account would have been used by NHAI to remit to the “consolidated fund of India”, this fact can easily be verified from the said escrow account. If no amount of toll fees is recovered by NHAI to be remitted to the consolidated fund of India or otherwise then naturally the impugned deposits of toll fees by OPPL is out of the ambits of the provisions of section 206C(1C) of I.T. Act. Otherwise on the payment of Re.1/- we have already held that it is not practicable to invoke the provisions of section 206C(1C). - Decided against revenue
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