TMI Blog2016 (6) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 declarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d pulp for manufacturing, processing or producing article or thing and not for trading? 3. Whether the Tribunal was correct in treating only the delay in filing the declaration before CIT, which is not at all the issue in the order passed by ITO (TDS), thus giving decision which is beyond jurisdiction and the issue what Tribunal has not considered whether the lapse which the seller has committed by not obliging to collect tax in the absence of declaration by the buyer is condonable or not? We have heard Mr. Aravind, learned counsel appearing for appellant-revenue. 4. The relevant discussion by the Tribunal on the aforesaid questions are at paragraph Nos.8 9 of the impugned order which read as under: 8. We have perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Five per cent iii) Timber obtained under a forest lease Two and one- half per cent iv) Timber obtained by any mode other than under a forest lease Two and one - half per cent v) Any other forest produce not being timber or tendu leaves Two and one - half 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 Law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Declaration by a buyer for no collection of tax at source under section 206C(1A). 37C.(1) A declaration under sub-section (1A) of section 206C to the effect that any of the goods referred to in the Table in sub-section (1) of that section are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No. 27C and shall be verified in the manner indicated therein. (2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax. (3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad 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 was confirmed by Hon ble Madras High Court. Proceedings on the assessee for the alleged default here were initiated on 10/10/2011 and assessee had before 31/10/2012 filed the Forms. Assessment years involved were assessment year 2009-10 to 2011-12 and there was much time left with the Revenue to verify whether the buyers were indeed using the wood pulp for manufacturing, processing or producing article or thing and not for trading and to proceed against them if they had furnished false declaration. We are therefore of the opinion assessee could not have been deem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue contended that the 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. Therefore, finding of the Tribunal regarding furnishing of the declaration by the buyer to the assessee run counter to Section 206-C(1) of the Act . Therefore, the question of law may arise for consideration. 8. 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 cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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