Case Law Details
Umeshkuamr Harilal Shah Vs ITO (TDS) (ITAT Ahmedabad)
It is undisputed fact that the assessee is not a manufacturer and the scrap which was sold by the assessee was not from the manufacturing activity. The decision of the Special Bench in case of Bharti Auto Product (supra) was observed that scrap means wasted which is definitely not usable as it is. Scrap might have been bought and sold. Scrap might have arisen due to manufacturing activity which is sold. Whatever it may be, it is a fact that the assessee had the scrap for sale. In the present assessee’s appeal the assessee has taken reliance on the Circular 18 dated 21.05.2012 was not considered by the Special Bench of the Tribunal. But from the perusal of the said Circular which later issued by the CBDT it is stated that there is no requirement that the goods to be eligible for scrap should be produced/manufacture by the seller itself. In present assessee’s case the assessee has not filed prescribed Form 27C thereby exempting the seller to collect tax under Section 206C of the Act. Thus, the Assessing Officer as well as CIT(A) has rightly made tax liability including interest under Section 206C of the Act.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the assessee against the order dated 12.06.2018 passed by the Ld. CIT(Appeals)-7, Ahmedabad for A.Y. 2012-13.
2. The grounds of appeal raised by the assessee read as under:
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