TMI Blog2016 (4) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... er authorities. Accordingly, in view of the above discussion and relying on the decision of the co-ordinate bench in the case of Karnataka Forest Dev. Corpn. Ltd. vs. ITO (2015 (7) TMI 908 - ITAT BANGALORE ), we are of the view that the moment assessee has received form no.27C from the buyers his liability to collect TCS @ 1% gets away and the assessee should not be deemed to be in default for any minor clerical mistakes in the forms submitted by the buyers in the given circumstances when there is no variation in the purchase figures shown by the buyers with the sales figure shown by the assessee in its books of account. - Decided in favour of assessee - ITA No.2201/Ahd/2015 - - - Dated:- 1-3-2016 - Shri Rajpal Yadav, JM, Manish Borad, AM. For The Appellant : Shri Umaid Singh Bhati, AR For The Respondent : Shri Vilash V. Shinde, DR ORDER PER Manish Borad, Accountant Member. This appeal of the assessee is directed against the order of ld. CIT(A)-4, Ahmedabad, dated 12.05.2015 passed pursuant to the order of ITO (TDS)-1, Ahmedabad framed u/s 206C(7) of the I.T. Act, 1961 (in short the Act) dated 7.5.2013. Assessee has raised three grounds of appeal revo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales for ₹ 3,10,81,253/- received from the buyers and allowed the claim of the assessee for 0% TCS on sales of ₹ 1,53,20,566/- on the basis of form no.27C submitted by the assessee and for the remaining sales of ₹ 1,57,60,687/- confirmed the addition made by the Assessing Officer by giving a reason for denying the claim of the assessee that out of the total 24 forms relevant to sales of ₹ 1,57,60,687/- in 19 cases no date was mentioned in part-I and in two cases there was some over writing and in one case each there was no data and wrong date mentioned. 5. Aggrieved, assessee is now in appeal before the Tribunal. 6. The ld. AR of the assessee submitted that form no.27C are being prepared by the buyers of goods and the same were submitted to the assessee. Ld. representative submitted that out of the total 24 forms of form 27C for sales of ₹ 1,57,60,687/- not a single defect in the form of identity and non-genuineness of the buyer has been established on record and only for the clerical mistake that too on the part of the buyer, assessee has been treated in default. He further submitted that once any declaration is received by the seller of scrap f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... man consumption One per cent ii) Tendu leaves Five per cent iii) Timber obtained under a forest lease Two and onehalf per cent iv) Timber obtained by any mode other than under a forest lease Two and onehalf per cent v) Any other forest produce not being timber or tendu leaves Two and onehalf per cent vi) Scrap One per cent: Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other ITA No.1153/Bang/2014 Dr.Hajjaji Krishnamurthy Anand Page 7 of 9 mode, whichever is earlier, collect from the buyer of any goods of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 206C(1) need not do so if he obtains a declaration from the buyer that he is purchasing the goods for use in manufacturing, processing or producing articles or things. It does not say that such declaration has to be obtained at the very same moment when a sale is affected. A reading of sub section (1B) clearly brings out this since obligation of the assessee to file a copy of the declaration arises only when the declaration is furnished to him by the buyer. The point of reference is furnishing of declaration by the buyer and not the month or date on which sale is affected by the assessee. Even if we consider that there is a breach on the part of the assessee in not obtaining the declaration from the buyer the moment a sale was affected, and in filing it before the CCIT or CIT, as the case may be, a similar breach was considered to be only technical and one that could be condoned by Hon ble Madras High Court in the case of Adisankar Spinning Mills (P) Ltd., (supra). In the said case, assessee had filed Form 27C subsequent to the proceedings, through a rectification petition under section 154, but still considered to be sufficient compliance, which view of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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