Opening Liquor Bottles Not ‘Scrap’ under Section 206C of Income Tax Act: Madras HC

Tamil Nadu State Marketing Corporation Ltd. Vs DCIT (Madras High Court) Summary: In a judgment regarding Tamil Nadu State Marketing Corporation Ltd. vs. DCIT, the Madras High Court ruled that the mere opening, breaking, or uncorking of a liquor bottle, even if done by twisting the seal, does not qualify as the generation of “scrap” from the “mechanical working of material.” The court emphasized that Section 206C of the Income Tax Act, 1961, which deals with the collection of tax at source, applies to waste or scrap resulting from manufacturing or mechanical working of m...