AHMEDABAD STRIPS PRIVATE LIMITED,AHMEDABAD vs. THE DY.CIT, TDS CIRCLE, AHMEDABAD

ITA 2211/AHD/2025Status: DisposedITAT Ahmedabad17 March 2026AY 2012-13Bench: Ms. Suchitra Kamble (Judicial Member)6 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the assessee had already deducted and paid the TCS, and the respective parties involved in the transactions had also paid their taxes. Therefore, the Assessing Officer and CIT(A) were incorrect in imposing the demand and penalty.

What were the facts?

The assessee, Ahmedabad Strips Pvt. Ltd., faced a demand of Rs. 4,03,139/- for alleged non-collection of TCS on scrap sales under Section 206C(6A) r.w.s 206C(7). The AO passed an order without giving an opportunity of being heard, and a subsequent application for rectification under Section 154 was rejected, leading to a penalty. The CIT(A) dismissed the assessee's appeal, despite the assessee contending that TCS was already collected at 1% on roll scrap sales and providing a reconciliation statement to address discrepancies between financial statements and TCS returns.

What were the issues?

Whether the assessee was liable to pay TCS under Section 206C(6A)/(7) despite having already collected and paid it, and if the rejection of a rectification application under Section 154 without an opportunity of being heard was valid.

Which sections of the Income-tax Act were involved?

Section 206C(6A),Section 206C(7),Section 154,Section 210,Section 201A,Section 271CA,Section 206

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD

Before: Ms. Suchitra Kamble

For Appellant: Shri Jaimin Shah, A.R
For Respondent: Smt. Mamta Singh, Sr. D.R

This is an appeal filed against the order dated 08-10- 2025 passed by Addl/JCIT(A), Panaji for assessment year 2012-13

2.

The grounds of appeal are as under:- “01. That the Ld. A.O. has passed an order u/s 206C(6A) r.w.s. 206C (7) for A.Y. 2012-13 which was confirm by CIT(A) without appreciating the facts on records and as such the demand raised of Rs. 4,03, 139/- required to be deleted.

02.

That the Ld. A.O. has rejected application of the appellant u/s 154 of the Income Tax Act, 1961 without giving opportunity of being heard and which was confirmed by CIT(A) is against the provision of natural justice. Therefore the order passed by Dy. CIT, TDS, Circle, Ahmedabad dated 27/03/2019 needs to be rectified.

I.T.A No. 2211/Ahd/2025

The order continues below.

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