TCS liability against mining officer was valid as compounding fees from Illegal Mining was treated as ‘Transfer of Rights’

Mining Officer Vs DCIT (TDS) (ITAT Raipur)

Conclusion: Compounding fees collected from illegal mining, transportation, and storage of minerals constituted a ‘transfer of rights’ and consequently attracted  Tax Collection at Source (TCS) under Section 206C(1C) as it involved parting with an interest in the mine.

Held: Assessee, District Mining Officer (DMO), was subjected to proceedings under Section 206C(1C) for failure to collect tax at source (TCS) on: compounding fees received from illegal miners, transporters, and storage operators,

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