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2018 (7) TMI 952 - ITAT NAGPURDemand of interest u/s 206C(7) - chargeable from the assessee till the date of filing of return of income - Liability to make TCS u/s 206C(1C) r.w.s 206C(6) - Held that:- Undisputedly, the assessee is an AOP and the contract for collection of toll was given to its member i.e. M/s JV Kulkarni & Friends Associates, Buldhana. CIT(A) had already concluded that no demand u/s 206C(1C) lies in the case of assessee. Even otherwise the provision of Sec. 206C(7) of the Act were not applicable to the earlier years clause of section 206C(7) of the Act with regard to charging of interest was introduced by Finance Act, 2012 and was thus not applicable to any years prior to that. AOP and its members are not separate entities, therefore no TCS was required to be collected from its member. Even, in the remand report, CIT(A) has admitted that assessee was not liable to make TCS u/s 206C(1C) r.w.s 206C(6), thus there was no question of charging interest u/s 206C(7) of the Act. More particularly, the proviso clause with regard to charging of interest u/s 206C(7) of the Act was introduced by Finance Act, 2012 and since the present case pertains to AY 2009-10. Therefore, the assessee was not covered under the said provision, hence, was not liable to pay interest. We order accordingly and also these grounds raised by the assessee.
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