2018 (5) TMI 1093

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..... pite of the fact the assessee was trader of scrap and the provision of Section 206[1] was applicable to the assessee ?" We are concerned with Assessment Year 2011-2012. The respondent-assessee is a dealer in scrap. During the period relevant to the said assessment year, he had sold scrap of Rs. 12.72 Crore [rounded off] on which he was required to collect tax at source in terms of Section 206C [1] of the Income-tax Act, 1961 ["the Act" for short] unless the buyers had provided him necessary certificates referred to in sub-section [1A] thereof. Before Assessing Officer, the assessee produced no such certificates. The Assessing Officer therefore, in terms of sub-section [7] of Section 206C, levied tax and interest. In appeal before the Comm .....

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..... form, verified in the prescribed manner. Such prescriptions are to be found in Rule 37C of the Income-tax Rules, 1962. Sub-section (1) thereof provides that declaration under sub-section 206C shall be in form 27C and shall be verified in the manner indicated therein. Sub-rule [2] of Rule 37C requires that the declaration referred to in subsection (1) shall be furnished in duplicate to the person responsible for collecting tax. Under sub-rule (3), such person would deliver to the Chief Commissioner or the Commissioner, one copy of such declaration on or before the seventh day of the month, next following the month in each declaration is issued. Thus, Rule 37C in addition to prescribing the form for grant of declaration and the manner the s .....

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..... es to, as and when the need so arises make proper verifications. This sub-section itself does not provide for any time limit within which, such declaration is to be made. The time limit, of course, would be found in Rule 37C of the Income-tax Rules, 1962. The main thrust of sub-section 1A of Section 206C thus is to make a declaration as prescribed, upon which, the liability to collect tax at source under sub-section (1) would not apply. When there was no dispute about such a declaration being filed in a prescribed format and there was no dispute about the genuineness of such declaration, mere minor delay in filing the said declaration would not defeat the very claim. The Tribunal therefore, viewed such delay liberally and in essence held th .....

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