Scrap not generated out of manufacturing activities carried out by assessee-Whether tax deductible under section 206C

Navine Fluorine International Ltd. Vs. ACIT (ITAT Ahemdabad)- The assessee was engaged in the manufacture of fluorine and other refrigerant gases. During the survey operation under section 133A it was noticed that the assessee had received payments on account of sale of scrap. The assessee company had not collected tax (TCS) at the time of receipt of the sale proceeds or at the time of debiting the account of the purchasers. The AO, therefore, issued a show cause notice as to why the tax be not raised under section 206C (6) and interest under section 206C (7). The assessee replied that the sc...