TCS Not Applicable on Illegal Mining Fines Due to Absence of Transfer of Rights: SC

DCIT (TDS) Vs District Mining Officer (Supreme Court of India) The case involves the applicability of Section 206C(1C) of the Income Tax Act, 1961 concerning collection of tax at source (TCS) on amounts received as compounding fees or fines from persons engaged in illegal mining or transportation of minerals. The matter originated from proceedings against a District Mining Officer, where the Income Tax Department alleged failure to collect TCS on compounding fees recovered from offenders. The Assessing Officer treated the authority as an “assessee in default” and raised demand along with i...