SC Upholds HC Ruling That TCS Cannot Apply to Compounding Fees in Illegal Mining Cases

DCIT Vs Deputy Director (Mineral And Administration) (Supreme Court of India) The dispute concerned whether Tax Collected at Source (TCS) under Section 206C(1C) of the Income Tax Act, 1961 applies to compounding fees or fines collected from persons involved in illegal mining or illegal transportation of minerals. The matter arose after a TDS survey under Section 133A(2A) was conducted on 24 September 2018 at the office of the District Mining Officer, Bemetara, Chhattisgarh. During the survey, the Income Tax Department observed that the mining department had collected compounding fees or fines ...