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TMI Blog2016 (7) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act on account of noncollection of TCS on sale of scrap and interest charged u/s.206C(7) in spite of the fact that the assessee was trader of scrap and the provision of section 206(1) was applicable to the assessee?" 3. Having heard learned counsel for the Revenue and having perused the documents on record, we notice that the Assessing Officer had made additions on the ground that the respondent had breached section 206C of the Income Tax Act, 1961 in case of sale of scrap, on the ground that the assessee had not submitted form27C comprising of the buyer's declaration to the Commissioner of Incometax in time. The assessee on the other hand had contended that he was not a trader of scrap and therefore, the provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cedural lapse only. The Revenue is unable to point any distinction on facts or law therein. We accordingly see no reason to interfere with lower appellate findings remitting the issue back to the Assessing Officer for adjudication afresh as per law. The Revenue's corresponding ground accordingly fails. The Revenue's next argument seeks to restore interest component of the above stated impugned demand. We are of the view that this issue is a consequential one only. We uphold lower appellate findings qua this interest issue as well. Revenue's appeal ITA No.350/RJT/2015 fails." 5. It thus, emerges that admittedly the assessee had submitted form 27C collected from the buyers. There was no dispute about the genuineness of the conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to in column (2) of the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things [or for the purposes of generation of power] and not for trading purposes. 8. Thus, in terms of the explanation clause (aa) any person who purchases the goods in retail sale for personal consumption would not be included within the definition of term 'buyer'. It is therefore, that under sub section (1A) of section 206C, calculation of tax under subsection 1 would not be made, if the buyer furnishes to the person responsible for the tax a declaration in writing in prescribed form declaring that the goods in question are to be utilized for the purposes of manufacturing process or producing art ..... X X X X Extracts X X X X X X X X Extracts X X X X
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