Case Law Details
ACIT Vs M/s. Bansal Ship Breakers P. Ltd. (ITAT Ahmedabad)
Any person responsible for collecting taxes (TCS) under section 206(1) need not to do so if he obtains a declaration from the buyer that he is purchasing the goods for re-use in manufacturing process or producing article or things. It does not say that such declaration has to be obtained at the very same moment when sale is effected.
FULL TEXT OF THE ITAT JUDGEMENT
Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-8, Ahmedabad dated 19.6.2017 passed for the Asstt.Year 2014-15.
2. Revenue has taken five grounds of appeal, but its grievance revolves around a single issue viz. the ld.CIT(A) has erred in deleting the demand of Rs.37,47,061/- under section 206C(1) and Rs.10,18,010/-under section 206C(7) of the Income Tax Act, 1961. In other words, the grievance of the Revenue is that the assessee was required to collect tax at source while selling scrap. Since it failed to collect such taxes on sale of Rs.37,46,06,052/- a demand under section 206C along with interest deserves to be raised against the assessee. The AO has raised such demand which has been quashed by the ld.CIT(A).
Please become a Premium member. If you are already a Premium member, login here to access the full content.