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Facts
The assessee, an individual engaged in coal trading, failed to submit Form 27C, required under Section 206C for exemption on mineral sales, during assessment proceedings following a survey. Consequently, the Assessing Officer imposed a tax liability of Rs.5,07,877/-, which was upheld by the CIT(A), leading to the assessee's appeal before the Tribunal.
Held
The Tribunal acknowledged the assessee's plea of ignorance and willingness to submit the documents, noting that compliance was lacking before the AO. With the DR's non-objection, the Tribunal remitted the case back to the Assessing Officer for fresh consideration, directing the AO to provide an opportunity to the assessee to furnish Form 27C and other evidence, allowing all appeals for statistical purposes.
Key Issues
Whether the tax liability imposed due to non-submission of Form 27C under Section 206C should be sustained or if the assessee deserves a fresh opportunity to provide the necessary documentation to the Assessing Officer.
Sections Cited
250, 206C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
order
: November 18, 2025 ORDER
Per Pradip Kumar Choubey, Judicial Member:
The captioned appeals have been preferred by the assessee against the separate orders all dated 08.12.23 of the Commissioner of Income Tax (Appeals)-21, Kolkata [hereinafter referred to as the “CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as the “Act”]. Since the issues involved in all the appeals are common and relate to the same assessee, therefore, these appeals have been heard together and are being disposed of by this consolidated order. is taken as lead case for narration of facts. to 197/Kol/2024 Mrs. Chaina Mondal through ECL E-tender and procure coal for sale to different parties. A survey was conducted in her premises on 28.11.2017, the statement of her husband, Shri Uttam Kr. Mondal was recorded. The Assessing Officer asked for various details on different dates including Form 27C to verify the status of buyer and exemption for the seller @ 1% for minerals like coal. In the absence of submission of any declaration in Form 27C r.w.s. 206C, the Assessing Officer assessed Rs.19408195/- making tax liability of Rs.5,07,877/- for the year under consideration.
Aggrieved by the said order, the assessee preferred an appeal before the ld. CIT(A) wherein the appeal has been dismissed.
Aggrieved and dissatisfied, the assessee has come in appeal before us. The ld. AR argued that the assessee is ignorant of the income tax matters and her husband, Sri Uttam Kr. Mondal look after her business affairs and the assessee collected Form 27C from buyers on different dates but the same could not be filed on time as the same was in possession of the then Chartered Accountant in his office. The ld. AR prayed that the assessee is ready to submit relevant documents including Form 27C if the appeal of the assessee may be restored to the file of the Assessing Officer for fresh consideration.
The ld. DR did not raise any objection if the matter is remitted back to the file of the Assessing Officer.
After hearing the submissions of the counsels of the respective parties and perusing the orders of the lower authorities, it appears to us that there was no compliance before the Assessing Officer on different dates and the Assessing Officer made a tax liability of Rs.5,07,877/- for lack of proper evidence to prove the case of the assessee. Considering the facts of the case and on the request of the ld. AR of the assessee, we are to 197/Kol/2024 Mrs. Chaina Mondal of the view that the assessee may be provided one more opportunity to produce relevant documents including Form 27C to substantiate her case. We restore the appeal of the assessee to the file of the Assessing Officer to re-examine considering the documentary evidences and explanations which will submit by the assessee during the de novo proceedings after affording opportunity to the assessee of being heard. The assessee is directed to positively cooperate in the remand proceedings by submitting necessary evidences and explanations to substantiate its claim. Hence, is allowed for statistical purposes. the facts and issues involved in all the appeals are identical, therefore, our findings/directions given above in the above will mutatis mutandis apply to 195, 196 & 197/Kol/2024 also. Hence, 195, 196 & 197/Kol/2024 are allowed for statistical purposes.
In the result, all the captioned appeals of the assessee allowed for 8. statistical purposes.
Kolkata, the 18th November, 2025.