THE COMMISSIONER OF INCOME TAX(TDS) vs. SHRI JAYESH NENSI GAJERA

TAXAP/302/2018HC GujaratGJHC24020619201810 April 2018Author: HONOURABLE MR. JUSTICE AKIL KURESHI,HONOURABLE MR. JUSTICE B.N. KARIA2 pages
AI SummaryDismissed

What were the facts?

The Revenue is in appeal against an order of the Income Tax Appellate Tribunal (ITAT) dated July 28, 2017. The appeal concerns the assessment year(s) not explicitly stated but pertains to the requirement of collecting tax at source on the sale of scrap by a trader. The ITAT had restored the matter to the Assessing Officer. The assessee is Shri Jayesh Nensi Gajera, a trader of scrap. The dispute arises from the applicability of Section 206C(6)/206C(7) of the Income Tax Act. The ITAT noted that the assessee had filed a declaration in Form 27C, but the CIT (Appeals) had not provided complete information regarding the filing date of this declaration, making it difficult for the ITAT to adjudicate. Consequently, the ITAT relied on a previous High Court judgment to restore the file to the Assessing Officer for verification.

What did the High Court hold?

The High Court held that the Income Tax Appellate Tribunal (ITAT) did not err in restoring the matter to the Assessing Officer. The Tribunal had noted that the assessee had filed a declaration in Form 27C. However, the CIT (Appeals) had not provided complete information, including the date of filing the declaration, which made it difficult for the ITAT to decide the issues. Citing the High Court's own decision in Commissioner of Income Tax vs. Siyaram Metal Udyog (P) Ltd. [(2016) 71 taxmann.com 204], the Tribunal restored the matter to the Assessing Officer for verification and examination of facts. The High Court found no error in this approach. The operative direction was to restore the file to the Assessing Officer. No specific issue was left undecided.

What were the issues?

1. Whether the Appellate Tribunal has substantially erred in law in restoring the file to the Assessing Officer, considering the assessee is a trader of scrap and the provisions of Section 206C(6)/206C(7) apply? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue argues that the Tribunal erred in restoring the file to the Assessing Officer. They contend that the assessee is a trader of scrap and the provisions of Section 206C(6)/206C(7) are applicable. The Revenue implicitly argues that the Tribunal should have decided the matter on merits rather than remanding it, given the applicability of the said sections.

Which sections of the Income-tax Act were involved?

Section 206C(6),Section 206C(7)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/302/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 302 of 2018 ========================================================== THE COMMISSIONER OF INCOME TAX(TDS) Versus SHRI JAYESH NENSI GAJERA ========================================================== Appearance: MR MANISH BHATT FOR MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA Date : 10/04/2018

ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

1.

Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 28.07.2017. Following question has been proposed for reconsideration: “Whether the Appellate Tribunal has substantially erred in law in restoring the file to the Assessing Officer despite the fact that the assessee is a trader of scrap and the provision of section 206C(6)/206C(7) apply to the assessee?”

2.

Issue pertains to requirement of collection of tax at source in case of sale of scrap to a d

The order continues below.

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