No TCS on Compounding Fees as Illegal Mining Lacks Legal Contract or Licence: SC

DCIT (TDS) Vs District Mining Officer (Supreme Court of India) In DCIT (TDS) vs District Mining Officer, the Supreme Court of India dismissed the Special Leave Petitions filed against the judgment of the Chhattisgarh High Court, thereby affirming the High Court’s ruling that Tax Collected at Source (TCS) under Section 206C(1C) of the Income-tax Act, 1961 is not applicable on compounding fees collected from illegal mining activities. The Supreme Court, after condoning delay, declined to interfere with the High Court’s judgment and dismissed the petitions, effectively upholding the findings...