Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

I.T.O (TDS) Ward 58 (4) Versus Sri Nirmal Kumar Kejriwal and Vica-Versa

Tax Collection at Source (TCS) - Violation of provisions of section 206C - assessee in default - levy and collection of tax at source in respect of profits and gains of trading in Sawn timber - Held that:- The sawn timber were sold by the assessee to the persons who were engaged in manufacturing and processing furniture and such other products. Hence the assessee’s case falls under the exception provided in provisions of section 206C(1A) of the Act. Sale of sawn timber does not fall under the am .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Learned CIT(A)-I, Kolkata in Appeal Nos. 85-89 / CIT(A)-I/58(4)/11-12 dated 19.11.2012 against the consolidated order of the Learned AO framed for the Asst Years 2005-06 to 2009-10 u/s 206C(6)/206C(7) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). Since the issue involved in all the appeals of the revenue are identical in nature, they are taken up together and disposed off by this consolidated order for the sake of convenience. 2. The only issue to be decided in these appeals .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e buyers on sale of sawn timber in accordance with the provisions of section 206C of the Act. The assessee tried to explain that no tax was collectible on sale of sawn timber as section 206C of the Act stipulates tax to be collected at source (TCS) and remitted only in respect of timber and not sawn timber. It was further explained that articles like sawn timber resulted different articles than timber as contained in table in section 206C(1) of the Act by operation of sawing machines and sawn ti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The Learned AO not being satisfied with the replies of the assessee, treated the assessee as assessee in default for failure to collect tax at source in terms of section 206C(1) of the Act. On first appeal, the Learned CIT(A) held that sawn timber is different from timber as there was radical change from timber to sized timber. Accordingly, he held that the provisions of section 206C(1) is not applicable to the assessee. Aggrieved, the revenue is in appeal before us by raising the similar groun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the forest lease or other modes. Each and every timber which is obtained from tree is cut through by hand saw or mechanical saw machine and only by cutting through a saw machine the timber is detached from its plant/tree. 2. The sawn timber is the same timber with the same chemical, physical, core properties, same constituents, same internal bonding etc. and it is not a new product. 3. The CIT (A) was not justified in stating that the word timber cannot be extended to the meaning of the sawn tim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Development Corpn. Ltd, wherein, in para 14 of the Tender document under the caption Restriction of Sale etc . b) Pictorial representation of business process of timber into sawn timber. He further placed reliance on the decision of the Hon ble Calcutta High Court in the case of Shaw Bros. and Co vs The State of West Bengal reported in 1963 14 STC 878 (Cal). He further argued that the sawn timber were sold to the persons who utilized goods for the purpose of manufacturing, processing and produc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in such return of income, then the seller of the sawn timber (assessee herein) shall not be treated as assessee in default. For this he placed reliance on the decision of the Hon ble Supreme Court in the case of Hindustan Coca Cola Beverage (P) Ltd vs CIT reported in 293 ITR 226 (SC). 5. The Learned DR vehemently relied on the order of the Learned AO and argued that the provisions of section 206C of the Act use the word timber, which includes all types of timber. He further stated that the deci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

collected from the buyer shall be paid by the seller within the prescribed time to the account of the Central Government. Otherwise, the seller shall be treated as assessee in default. We find that the Learned AO had invoked the item no. (iv) of Table in Section 206C(1) of the Act i.e timber obtained by any mode other than under a forest lease . The Learned CIT(A) had given a categorical finding that the assessee had traded only in Sawn timber and not timber. We have to decide whether the timbe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lying in the Corporation depot. No sawing or conversion of timber is to be permitted in the depot premises under any circumstances what so ever. This particular restrictive covenant in the tender document for timber proves that the term timber is different from sawn timber. 6.1. We find that when timbers are sawed out of logs or big size of timber, what is produced is a different thing for different uses. A new kind of commodity is manufactured because sawn timber made out of timber is not timb .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

find that the term manufacture is not defined in the Act. The Hon ble Supreme Court in the case of Aspinwall and Co. Ltd vs CIT reported in 251 ITR 323 (SC) had held that :- … The word manufacture has not been defined in the Income-Tax Act. In the absence of a definition, the word manufacture has to be given a meaning as is understood in common parlance. It is to be understood as meaning the production of articles for use from raw or prepared materials by giving such materials new forms, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

planks , sleepers , etc., amount to manufacture. Hence it could be safely concluded that the timber is different from sawn timber and hence the provisions of section 206C of the Act would not be applicable to the assessee. 6.4. We find that the Learned CIT(A) had given a categorical finding that the sawn timber were sold by the assessee to the persons who were engaged in manufacturing and processing furniture and such other products. Hence the assessee s case falls under the exception provided .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM – Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version