RAJDHANI MINERAL JAIPUR PVT. LTD,JAIPUR vs. INCOME TAX OFFICER TDS-I , JAIPUR

per provisions of section 206C of the Act. Accordingly, the demand

for an amount of Rs. 14,11,683/- was raised as tabulated herein

below:-

Total sales TCS to be TCS Balance Demand u/s Interest u/s Total (Rs.) collected collected (Rs.) (2.3) 206C(6A) 206C(7) demand (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) 1 2 3 4 5 6 7 93295220 932952 165717 767235 767235 644448 1411683

preferred an appeal before the ld. CIT(A)/NFAC. A propose to the

grounds so raised before ld. CIT(A)/NFAC, the relevant finding of

the ld. CIT(A)/NFAC on the issue is reiterated here in below:-

“8.5 However, the appellant has not submitted any information or documentary evidences in support of his claim in his ground of appeal mentioned above. In this regard, it is further brought to the notice of the appellant that though number of notices and reminders u/s 250 of the Income Tax Act, 1961 were issued to the appellant, he had not preferred to respond even to the one notice and opt to submit the documentary evidence in support of his contention in ground of appeal. Copies of screen shots taken from ITBA-Send Email portal’ have been affixed above as a proof that the notices and reminder issued to the appellant were duly served on the appellant.

4 ITA No. 333/JP/2023 Rajdhani Minerals Jaipur vs. ITO

the assessee preferred present appeal before this tribunal on the

ground as stated in para 2 above. Apropos to the grounds so

raised before us, the ld. AR of the assessee submitted that

confirmation on accounts declaration of the parties’ consent and

copy of income tax ITR were submitted as additional evidence and

the relevant statement of the assessee is reproduced herein below: ” 1. We Purchase the goods which are mainly Iron material and which are usable as such and which is tantamount to scrap or waste. Our items in question were usable as such and therefore do not fall within definition "scrap" as given in explanation (b) to section 206C (1) of the act. The expression of scrap is defined under clause (b) to the explanation to section 206 of the act to mean waste and scrap from manufacture or mechanical working of materials which is definitely no usable as such because of breakage cutting up, wear and other reasons. On a plain reading of the said expressions, it is evident that any material which is usable as such would not fall within the ambit of the expression "scrap" as envisaged under clause (b) of the explanation to section 206C of the act. The waste and scrap must be from manufacturing or mechanical working of material which is definitely not usable as such because of breakage cutting up, ware and other reasons. The assessee purchased MS material and plates ETC which are usable as such therefore it does fall within the definition of scrap. We are not liable for TCS because we sold the goods which are usable as such and finally not scrap. Kindly therefore delete the turnover of Rs. 76723672/- for levy of TCS of Rs.767235/- and cancel the total demand of tax, interest levied by AO.

5 ITA No. 333/JP/2023 Rajdhani Minerals Jaipur vs. ITO

S. NO. NAME OF PARTY TOTAL SALE 1. AGARSEN FOUNDARY PVT LTD. 530413.00 2. ANKIT TRADING COMPANY 2193591.00 3. HARI INDUSTRIES 1992497.00 4. K.M INDUSTRIES 800226.00 5. KHANDELWAL TRADING COMPANY 976152.00 6. MANGLA ISPAT JAIPUR LTD 3551632.00 7. MANGLA PRODUCTS PVT LTD 1331287.00 8. MUKESH IRON FOUNDARY PVT LTD 1218693.00 9. NK INDUSTRIES 824144.00 10. INRMAL INDUCTOMELT PVT LTD 4545309.00 11. PADAM ISPAT 408212.00 12. PRIEMER BARS PVT LTD 1057754.00 13. RN FORGING PVT LTD 227320.00 14 RAJDHANI FERROS PVT LTD 2667618.00 15 SAVITRI CONCAST LTD 1872783.00 16. SHREE BHAGWATI STEELS 5591681.00 17. SHREE GANPTI STEELS 466570.00 18. SHREE HARI IRON STEELS 1203287.00 19. SHREE KRISHNA ROLLING MILLS 1005605.75 20. SHREE RAM STEELS 1336028.00 21. SHREE SIDDHI VINAYAK INDUCTION LTD. 11197956.00 22 SHARI BALAJI INDUSTRIAL PRODUCTS LTD 1746904.00 23 VIJAY TRADING CORPORATION 572208.00 24 VINAYAK INTERNATIONAL 24042435.00

6 ITA No. 333/JP/2023 Rajdhani Minerals Jaipur vs. ITO

"The Hon'ble supreme court in its decision in the case of Hindustan coca cola Beverage P. Itd. (293 ITR 226) has held that where tax deductor has satisfied the officer in charge of TDS that taxes due have been paid by the deductee the same should not be recovered from the deductor. Keeping in view of the aforesaid decision of hon'ble supreme court where the assessee has submitted the declaration /copy of income tax filed by purchaser regarding the receipt such sale having been taken into account for computing income in such return of income and have paid the due Taxes on such income therefore we are not defaulter for non-collection of TCS although items sold by us was not scrap and it was only iron steel. We request please to delete the addition of turnover of Rs.76723672/-for the levy of TCS and kindly therefore cancel the total demand of Tax and interest accordingly.”

made so submitted that all the parties are assessed to tax and the

assessee has not sold the scrap not usable as such. Therefore,

considering that plea and the additional evidence placed on record,

the ld. AR of the assessee requested to remand back to the issue

to file of ld. AO so as to decide the applicability of the TCS based

on the evidences placed on record.

assessee and submitted that assessee failed to substantial the

merit of the case before the lower authorities. Therefore, the prayer

of the assessee should not be entertained.

7 ITA No. 333/JP/2023 Rajdhani Minerals Jaipur vs. ITO 8. We have heard the rival contentions and perused the material

placed on record. The bench noted that the assessee contended

before us by filing the confirmation of party, copy of ITR declaration

of the parties, all these evidence were not placed before lower

authorities. Therefore, considering the request of the assessee,

these additional evidences are accepted and the matter is remand

back to the file of ld. AO to decide the issue afresh after hearing the

contentions of the assessee as additional evidence filed before us

were never before the lower authorities. Based on the contentions

and evidence placed on record we find force in the arguments

advanced by the ld. AR of the assessee. The grounds of the appeal

of are only for the levy of TCS and interest there upon. Thus,

considering the prayer of the assessee, we consider it deem fit to

remand back the matter before the ld. AO to decide afresh on merit

first as to decide as to whether the sale is sale of scrap or of the

finished goods and if not then to consider the additional evidence.

Based on that set of facts, we are of the considered view that the

assessing officer should hear the assessee’s submission on merits

after affording proper opportunity of being heard and pass speaking

order in the matter. With these observations we set aside the

matter to the file of the learned assessing officer with a direction to

8 ITA No. 333/JP/2023 Rajdhani Minerals Jaipur vs. ITO hear the merits of the case after affording a reasonable opportunity

of being head to the assessee pass an appropriate order in

accordance with the law. At the same time assessee is directed to

represent and present all the facts before the assessing officer and

should not ask for the adjournment on frivols grounds. At this stage

we remand back the issues raised without commenting upon the

merits of the case and the ld. AO is directed to complete the

assessment.

In the result, appeal of the assessee is allowed for statistical

purposes.

Order pronounced in the open Court on 21/09/2023 . Sd/- Sd/- ¼ Mk0 ,l- lhrky{eh ½ ¼ jkBksM deys'k t;UrHkkbZ ½ (Dr. S. Seethalakshmi) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judcial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 21/09/2023 *Ganesh Kumar, PS आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- Rajdhani Minerals Jaipur Pvt. Ltd., Jaipur 1. izR;FkhZ@ The Respondent- Income Tax Officer, TDS-1, Jaipur 2. vk;dj vk;qDr@ CIT 3. 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File { ITA No. 333/JP/2023} vkns'kkuqlkj@ By order सहायक पंजीकार@Aेेज. त्महपेजतंत