M/S. SRI BHAVANI SAW MILL,TIRUNELVELI vs. ITO, TDS WARD,, TIRUNELVELI

ITA 3614/CHNY/2026Status: DisposedITAT Chennai25 August 2026AY 2014-159 pages
AI SummaryAllowed

What were the facts?

The assessees, engaged in timber business, sold timber without collecting Tax Collected at Source (TCS) and obtaining Form 27C from buyers at the time of sale. Although forms were later submitted, the AO treated them as defaulters for non-compliance with Section 206C.

What did the Tribunal hold?

The Tribunal held that the subsequent furnishing of Form 27C constitutes substantial compliance with the statutory requirements. Therefore, the assessees cannot be treated as defaulters merely due to the delay in obtaining the forms.

What were the issues?

Whether the delayed furnishing of Form 27C amounts to a violation of Section 206C, making the assessee liable as a defaulter, or if it constitutes substantial compliance.

Which sections of the Income-tax Act were involved?

Section 206C,Section 206C(1),Section 206C(1A),Section 206C(7)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI GAGAN GOYAL

For Respondent: Shri R. Raghupathy, Addl.CIT
Hearing: 20.08.2026Pronounced: 25.08.2026

PER GEORGE GEORGE K, VICE PRES

The order continues below.

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