DCIT (TDS) Vs District Mining Officer (Supreme Court of India)
In DCIT (TDS) vs District Mining Officer, the Supreme Court of India dismissed the Special Leave Petitions filed against the judgment of the Chhattisgarh High Court, thereby affirming the High Court’s ruling that Tax Collected at Source (TCS) under Section 206C(1C) of the Income-tax Act, 1961 is not applicable on compounding fees collected from illegal mining activities. The Supreme Court, after condoning delay, declined to interfere with the High Court’s judgment and dismissed the petitions, effectively upholding the findings that no TCS liability arises on such compounding fees.
Read HC Judgment in this case: TCS Cannot Be Extended to Illegal Mining Cases Due to Absence of Transfer of Rights: Chhattisgarh HC
The High Court judgment, which formed the basis of the Supreme Court’s decision, involved a batch of appeals arising from orders of the Income Tax Appellate Tribunal. The Tribunal had upheld the orders of the Commissioner (Appeals), confirming the liability of the District Mining Officer for failure to collect TCS on compounding fees recovered from illegal miners and transporters. The Assessing Officer had treated the assessee as “assessee-in-default” and raised demands along with interest and penalty under Sections 206C(1C), 206C(6), and 206C(7).
