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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: SHRI CHANDRA MOHAN GARG & LAXMI PRASAD SAHU
Per L.P.Sahu, AM
This is an appeal filed by the Revenue against the order dated 31.10.2017 of the CIT(A), Cuttack for the assessment year 2013-14.
The sole issue involved in this appeal is that the CIT(A) was not justified in deleting the demand raised u/s.206C(6) of Rs.65,18,020/- and interest levied u/s.206C(7) of Rs.2,57,267/- totaling to Rs.67,75,287/- of the I.T.Act, 1961.
The facts in brief are the assessee is engaged in the business of mining of iron ore, export of embroidered fabrics & other commodities. A TDS inspection was conducted by the Assessing Officer on 18.12.2012 in the business premises of the assessee. During the course of inspection, the Assessing Officer found that no tax had been collected at source as per the provisions of section 206C(1) on the
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ITA No.26/CTK/2018 Ass essment Year : 2013- 14
sale of iron ore from July, 2012 to November, 2012. However, during the above
sale of iron ore was effected of Rs.64,68,89,039/- and, therefore, TCS to be
collected @ 1% amounted to Rs.64,68,890/- and the assessee has deposited TCS
only Rs.1,79,694/-. In view of above, there was shortfall in TCS of Rs.62,89,196/-.
Before the AO, it was submitted that the buyers had submitted declaration form
No.27C for non-collection of TCS and, therefore, no TCS was collected. The AO
found that the 15 number of declaration forms submitted at the time of inspection
did not bear any date and the Part-II of the same had not been filled in and signed.
The AO also noted that copies of the declaration forms had not been delivered to
the CCIT/CIT as per the provisions of section 206C(1B) of the Act. Accordingly, the
AO issued a show cause notice initially in response to which the assessee
submitted in writing that it had not collected TCS from the parties who had given
27C forms being manufacturers and that all these forms would be submitted if
some time was allowed. Subsequently, in response to the final show cause notice
of the AO, the assessee submitted 76 declaration forms in Form No.27C relating to
25 parties along with the details of sales made to them. However, the AO did not
accept those declaration forms because of certain defects found therein and also
for the reason that all those declaration forms were not filed at the time of TCS
inspection. The AO also refused to take the declaration forms into consideration
because copies of the same were not delivered to the CCIT/CIT having jurisdiction
over the assessee as per the provisions of section 206C(IB) and were submitted to
the CIT-3, Kolkata only on 21.1.2013. Finally, the AO raised a demand of
Rs.65,18,020/- u/s.206C(6) and levied interest thereon of Rs.2,57,267/-
u/s.206C(7).
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