9911796707
TMI Blog2016 (3) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... e material on record are as under. 3. The assessee is an individual and stated to be engaged in the trading of ferrous and non-ferrous metal scrap and brass scrap. During the course of an internal audit, it was noticed that during F.Y. 2009-10, assessee had sold scrap of Rs. 10,56,43,645/- on which according to A.O., assessee was required to collect Tax at Source (TCS) u/s.206C(1) of the Act but assessee had not collected tax. Assessee was therefore asked to show as to why the order u/s.206C(6) of the Act should not be passed and interest u/s.206C(7) of the Act be not levied, to which, assessee inter alia submitted that assessee had sold goods to 121 manufacturing entities from whom assessee had collected Form No.27C, but since the forms w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. However, it has also been clarified that late submission of form 27C & 27BA does not make the assessee in default, because procedural provisions are generally curative in nature. Hence, the TCS as well as interest on TCD demand is hereby cancelled. However, interest is leviable on the TCS to be deducted from the due date of deduction to the date of filing the return of income by the buyers. Accordingly the A.O. is directed to charge the Interest in case of 27BA forms submission." 3.1 On the issue of penalty levied u/s.271CA, ld. CIT(A) decided the issue in favour of assessee by holding as under: "6. I have duly considered the submission of the appellant and also gone through the order u/s.206CA. 6.1 As the issue u/s.206C(6)/206C( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d after detection of default by the department. 5. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the A.O. passed u/s.206C(6A) & 206C(7) of the Act." Grounds of ITA No.523/Rjt/2015 "1. The Ld. CIT(A) has erred in Law as well as on facts in law in deleting the penalty u/s.271CA of the Act on account of non collection of TCS on sale of scrap in spite of the fact that the assessee is a trader of scrap and the provision of section 206CA squarely apply to the assessee. 2. The Ld. CIT(A) has erred in law as well as on facts in directing not to treat the assessee in default for non collection of TCS on sale of scrap to manufacturer where Form No.27C has not been filed with the department i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
