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2016 (6) TMI 646 - HC - Income TaxTax Collection at Source (TCS) - Liability of the assessee to supply the declaration u/s 206C - whether Tribunal erroneously did not consider the aspect that as per Section 206-C(1) of the Act such declaration has to be furnished when the payment is made by issuance of the cheque or by debiting the entries in the books of accounts whichever is earlier? - Held that:- Tribunal has interpreted the provisions of Section 206-C(1a) observing that, the assessee can furnish the declaration only when it is so furnished to him by the buyer. As such, the liability of the assessee to supply the declaration to the assessing officer as provided under sub-Section 1-B of Section 206 of the Act is considered. It further appears that the Tribunal thereafter has considered that even if there is a breach on the part of the assessee in not obtaining the declaration from the buyer in the month when the sale was effected, it was only a technical breach and could be condoned as per the earlier decision of the Tribunal which has been interfered with by the Madras High Court in the case of CIT vs. Adishankar Spinning Mills(P) Ltd., (2010 (12) TMI 1084 - MADRAS HIGH COURT ). It appears that thereafter, as in the present case, declaration of the buyer was furnished in response to the show-cause notice and as it was not the case of the revenue that the declaration was false, the Tribunal set aside the order of the lower authorities.. We are unable to accept the contention of the revenue for the simple reason that effecting sale cannot be equated/correlated with the payment made pursuant to sale or by debit entries in the books of account s and therefore, the finding of the Tribunal cannot be considered to be in contravention to the provision of Section 206-C(1) of the Act. In any case, the Tribunal has found that even if there is a technical breach, sufficient compliance is made by the assessee more particularly, when it was not the case of the appellant- revenue that any false declaration was filed. No substantial question of law - Decided against revenue
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