Section 206C(7) of the Income Tax Act

Income-tax Act, 2025: s.394

Section 206C(7) falls under section 206C of the Income-tax Act, 1961, which corresponds to section 394 (Collection of tax at source) of the Income-tax Act, 2025.

Read section 394 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 206C(7) is Sir Dorabji Tata Trust v. DCIT(E) (188 ITD 38), cited in 32 of the 159 judgments on BharatTax that turn on this section.

Leading authorities on Section 206C(7)

Sir Dorabji Tata Trust v. DCIT(E)
188 ITD 38 · 2021 · ITAT
32
citing judgments

An assessment order cannot be held as erroneous and prejudicial to the revenue if the Assessing Officer conducted extensive inquiries and was satisfied with the assessee's claim during assessment proceedings.

CIT v. Adisankara Spinning Mills (P.) Ltd.
362 ITR 233 · 2014 · High Court
14
citing judgments

A technical breach of filing a statutory form, such as Form 27C, can be condoned. No liability under section 206C(6A) or 206C(7) can be fastened on the assessee if the statutory form is filed, even if not furnished in time.

Lampmaster Wolters India P. Ltd. v. ITO
141 Taxmann.com 149 · 2022 · ITAT
12
citing judgments

Late fees under section 234E can be levied for belated TDS returns filed, and processed, on or after June 1, 2015, in line with amendments to section 200A.

CIT (TDS) v. Priya Blue Industries (P.) Ltd.
65 Taxmann.com 206 · 2016 · High Court
7
citing judgments
Vkare Bio Sciences (P.) Ltd. v. DCIT
134 Taxmann.com 7 · 2022 · Reported
6
citing judgments
PCIT v. Postal Gujarat Power Ltd.
10 Taxmann.com 418 · 2019 · High Court
5
citing judgments
Eid Mohammad Nizamuddin v. ITO
116 Taxmann.com 579 · 2020 · Reported
5
citing judgments
Pr. CIT (TDS) v. Safari Fine Clothing (P.) Ltd.
89 Taxmann.com 129 · 2018 · High Court
4
citing judgments

Judgments on Section 206C(7)

Arham Enterprise, Dist. Rajkot vs. The ITO(TDS), Ward-1, Rajkot

In the result, all these appeal appeals of the assessee i

ITA 228/RJT/2022[2017-18]Status: DisposedITAT Rajkot19 Sept 2025AY 2017-18

Bench: Dr. Arjun Lal Saini. Before Dr. Arjun Lal Saini. Before Dr. Arjun Lal Saini. & Shri Diesh Mohan Sinhashri Diesh Mohan Sinha

For Appellant: Shri Mehul Ranpura, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr
Section 206

Arham Enterprise, Dist. Rajkot vs. ITO(TDS), Ward-1, Rajkot

In the result, all these appeal appeals of the assessee i

ITA 227/RJT/2022[2016-17]Status: DisposedITAT Rajkot19 Sept 2025AY 2016-17

Bench: Dr. Arjun Lal Saini. Before Dr. Arjun Lal Saini. Before Dr. Arjun Lal Saini. & Shri Diesh Mohan Sinhashri Diesh Mohan Sinha

For Appellant: Shri Mehul Ranpura, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr
Section 206

Perfect Filaments Limited, Mumbai vs. Principal Commissioner of Income Tax Circle -4, Mumbai

In the result, the appeal by the assessee is partly allowed in terms of our aforesaid decision

ITA 3501/MUM/2025[2020-21]Status: DisposedITAT Mumbai10 Sept 2025AY 2020-21

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhailperfect Filaments Limited, E-23/24/25/26, Commerce Centre, Tardeo Road Tulsi Wadi, S.O., ............... Appellant Mumbai - 400034 Pan : Aaacp4215F V/S Principal Commissiioner Of Income Tax-4 ……………… Respondent 6Th Floor, Aayakar Bhavan, M.K. Road, Mumbai – 400020 Assessee By : Shri Dharan Gandhi Revenue By : Shri R.A. Dhyani, Cit-Dr

For Appellant: Shri Dharan GandhiFor Respondent: Shri R.A. Dhyani, CIT-DR
Section 143(3)Section 201Section 263Section 40Section 80G

Collector Mining vs. The Deputy Commissioner of Income Tax (TDS)

Appeal is allowed to the extent indicated herein-above

TAXC/111/2025HC Chhattisgarh20 Aug 2025
For Appellant: Mr. Rahul Tamaskar, Government AdvocateFor Respondent: Mr. Ajay Kumrani, Advocate on behalf of Mr. Amit
Section 133ASection 206Section 206CSection 260A

Hester Bioscience Limited, Mehsana vs. The Pr.CIT-1, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1084/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad04 Aug 2025AY 2020-21

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

For Appellant: Shri Dhinal Shah, ARFor Respondent: Shri R P Rastogi, CIT-DR
Section 115BSection 143(3)Section 144BSection 201Section 263Section 40Section 80G

M/S. Bharat Coking Coal Limited, Dhanbad vs. ACIT TDS Circle, Dhanbad

In the result, all the three appeals of the assessee are partly allowed

ITA 116/RAN/2024[2015-16]Status: DisposedITAT Ranchi02 Apr 2025AY 2015-16

Bench: Shri George Mathan, Jm & Shri Ratnesh Nandan Sahay, Am (Through : Hybrid Mode) आयकर अपील सं./Ita Nos.114 To 116/Ran/2024 (धनध ारण वषा / A.Y.S :2013-2014, 2014-2015 & 2015-2016) M/S Bharat Coking Coal Limited, Vs. Acit (Tds Circle), Dhanbad Corporate Accounts & Taxation Department, The G.M.Koyla Bhawan Koyal Nagar, Bccl Township, Dhanbad स्थ यी लेख सं./जीआइआर सं./Pan/Gir No. : Aaacb 7934 M (अपील थी /Appellant) .. (प्रत्यथी / Respondent) निर्धाऩिती की ओर से /Assessee By : Shri M.K.Choudhary & Shri Devesh Poddar, Advocates र जस्व की ओर से /Revenue By : Shri Amitabh Kumar Sinha, Cit-Dr सुनव ई की त रीख / Date Of Hearing : 03/04/2025 घोषण की त रीख/Date Of Pronouncement : 03/04/2025 आदेश / O R D E R Per Bench : These Are The Appeals Filed By The Assessee Against The Separate Orders Of The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, All Dated 25/01/2024, Passed In Din & Order No.Itba/Nfac/S/250/2023- 24/1060142968(1), Itba/Nfac/S/250/2023-24/1060143462(1) & Itba/Nfac/S/250/2023-24/1060143195(1) For The Assessment Years 2013-2014, 2014-2015 & 2015-2016, Respectively. 2. Shri M.K.Choudhary & Shri Devesh Poddar, Advocates Appeared On Behalf Of The Assessee In All The Three Cases & Shri Amitabh Kumar Sinha, Cit-Dr Appeared On Behalf Of The Revenue.

For Appellant: Shri M.K.Choudhary & Shri DeveshFor Respondent: Shri Amitabh Kumar Sinha, CIT-DR
Section 206C

M/S. Bharat Coking Coal Limited, Dhanbad vs. ACIT TDS Circle, Dhanbad

In the result, all the three appeals of the assessee are partly allowed

ITA 115/RAN/2024[2014-15]Status: DisposedITAT Ranchi02 Apr 2025AY 2014-15

Bench: Shri George Mathan, Jm & Shri Ratnesh Nandan Sahay, Am (Through : Hybrid Mode) आयकर अपील सं./Ita Nos.114 To 116/Ran/2024 (धनध ारण वषा / A.Y.S :2013-2014, 2014-2015 & 2015-2016) M/S Bharat Coking Coal Limited, Vs. Acit (Tds Circle), Dhanbad Corporate Accounts & Taxation Department, The G.M.Koyla Bhawan Koyal Nagar, Bccl Township, Dhanbad स्थ यी लेख सं./जीआइआर सं./Pan/Gir No. : Aaacb 7934 M (अपील थी /Appellant) .. (प्रत्यथी / Respondent) निर्धाऩिती की ओर से /Assessee By : Shri M.K.Choudhary & Shri Devesh Poddar, Advocates र जस्व की ओर से /Revenue By : Shri Amitabh Kumar Sinha, Cit-Dr सुनव ई की त रीख / Date Of Hearing : 03/04/2025 घोषण की त रीख/Date Of Pronouncement : 03/04/2025 आदेश / O R D E R Per Bench : These Are The Appeals Filed By The Assessee Against The Separate Orders Of The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, All Dated 25/01/2024, Passed In Din & Order No.Itba/Nfac/S/250/2023- 24/1060142968(1), Itba/Nfac/S/250/2023-24/1060143462(1) & Itba/Nfac/S/250/2023-24/1060143195(1) For The Assessment Years 2013-2014, 2014-2015 & 2015-2016, Respectively. 2. Shri M.K.Choudhary & Shri Devesh Poddar, Advocates Appeared On Behalf Of The Assessee In All The Three Cases & Shri Amitabh Kumar Sinha, Cit-Dr Appeared On Behalf Of The Revenue.

For Appellant: Shri M.K.Choudhary & Shri DeveshFor Respondent: Shri Amitabh Kumar Sinha, CIT-DR
Section 206C

M/S. Bharat Coking Coal Limited, Dhanbad vs. ACIT (TDS) Circle, Dhanbad

In the result, all the three appeals of the assessee are partly allowed

ITA 114/RAN/2024[2013-14]Status: DisposedITAT Ranchi02 Apr 2025AY 2013-14

Bench: Shri George Mathan, Jm & Shri Ratnesh Nandan Sahay, Am (Through : Hybrid Mode) आयकर अपील सं./Ita Nos.114 To 116/Ran/2024 (धनध ारण वषा / A.Y.S :2013-2014, 2014-2015 & 2015-2016) M/S Bharat Coking Coal Limited, Vs. Acit (Tds Circle), Dhanbad Corporate Accounts & Taxation Department, The G.M.Koyla Bhawan Koyal Nagar, Bccl Township, Dhanbad स्थ यी लेख सं./जीआइआर सं./Pan/Gir No. : Aaacb 7934 M (अपील थी /Appellant) .. (प्रत्यथी / Respondent) निर्धाऩिती की ओर से /Assessee By : Shri M.K.Choudhary & Shri Devesh Poddar, Advocates र जस्व की ओर से /Revenue By : Shri Amitabh Kumar Sinha, Cit-Dr सुनव ई की त रीख / Date Of Hearing : 03/04/2025 घोषण की त रीख/Date Of Pronouncement : 03/04/2025 आदेश / O R D E R Per Bench : These Are The Appeals Filed By The Assessee Against The Separate Orders Of The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, All Dated 25/01/2024, Passed In Din & Order No.Itba/Nfac/S/250/2023- 24/1060142968(1), Itba/Nfac/S/250/2023-24/1060143462(1) & Itba/Nfac/S/250/2023-24/1060143195(1) For The Assessment Years 2013-2014, 2014-2015 & 2015-2016, Respectively. 2. Shri M.K.Choudhary & Shri Devesh Poddar, Advocates Appeared On Behalf Of The Assessee In All The Three Cases & Shri Amitabh Kumar Sinha, Cit-Dr Appeared On Behalf Of The Revenue.

For Appellant: Shri M.K.Choudhary & Shri DeveshFor Respondent: Shri Amitabh Kumar Sinha, CIT-DR
Section 206C

Vishal Enterprises, Jamnagar vs. ITO, TDS - 3, Jamnagar

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

ITA 778/RJT/2024[2013-14]Status: DisposedITAT Rajkot28 Feb 2025AY 2013-14

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपीलसं./Ita No.778/Rjt/2024 Assessment Year: (2013-14) (Hybrid Hearing) Vishal Enterprise Vs. Income-Tax Officer,Tds-3, 3010-3012, Phase –Iii Gidc, Jamanagar. Jamnagar -361004, Gujrat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aagfv6139H (Appellant) (Respondent)

For Appellant: Shri Chetan Agrwal, Ld. A.RFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Section 206C(6)

Income Tax Officer, TDS-3, Jamnagar vs. Sampatlal Badrilal Somani, Jamnagar

In the result, for statistical purposes, the appeal of the revenue is allowed

ITA 298/RJT/2023[2012-13]Status: DisposedITAT Rajkot07 Jan 2025AY 2012-13

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकरअपीलसं./Ita No.298/Rjt/2023 ("नधा"रणवष" / Assessment Year: (2012-13) (Physical Hearing) The Ito, Tds – 3, Vs. Sampatlal Badrilal Somani 2Nd Floor, Taranjali Proprietor Of S. B. Metal Udyog, Buildign, P. N. Marg, Plot No. 4/A/1, Nr. Kriti Weight Jamnagar – 361008 Bridge, Shanker Tekri, Udyognagar, Jamnagar – 361004 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Ahhps0245D (Appellant) (Respondent)

For Appellant: Shri Abhimanyu Singh Yadav, Ld. Sr. DRFor Respondent: Shri Chetan Agarwal &
Section 143(3)Section 206CSection 206C(3)Section 206C(6)

Satish Kumar Gupta, Jaipur vs. Incometax Officer TDS, Jaipur

In the result, the appeal of the assesee is allowed for statistical purposes

ITA 1043/JPR/2024[2012-13]Status: DisposedITAT Jaipur03 Jan 2025AY 2012-13

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

For Appellant: Shri P.C. Jain, (C.A.)For Respondent: Shri Gautam Singh Choudhary, (JCIT-DR)
Section 206C(7)

M/S Alphonsa Timbers and Traders Private Limited, Maradu vs. ITO(TDS), Kochi

In the result, ITA Nos.241 & 242/COCH/2024 are allowed for statistical purposes and ITA Nos

ITA 242/COCH/2024[AY 2013-2014]Status: DisposedITAT Cochin03 Jan 2025

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri S. Rajeev, AdvocateFor Respondent: Smt. Leena Lal, Sr. DR
Section 206CSection 206C(1)Section 206C(7)Section 221(1)

M/S Alphonsa Timbers and Traders Private Limited, Maradu vs. ITO(TDS), Kochi

In the result, ITA Nos.241 & 242/COCH/2024 are allowed for statistical purposes and ITA Nos

ITA 241/COCH/2024[AY 2012-2013]Status: DisposedITAT Cochin03 Jan 2025

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri S. Rajeev, AdvocateFor Respondent: Smt. Leena Lal, Sr. DR
Section 206CSection 206C(1)Section 206C(7)Section 221(1)

St. Alphonsa Timbers and Traders Private Ltd, Kochi vs. ITO(TDS), Kochi

In the result, ITA Nos.241 & 242/COCH/2024 are allowed for statistical purposes and ITA Nos

ITA 929/COCH/2022[2013-14]Status: DisposedITAT Cochin03 Jan 2025AY 2013-14

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri S. Rajeev, AdvocateFor Respondent: Smt. Leena Lal, Sr. DR
Section 206CSection 206C(1)Section 206C(7)Section 221(1)

St. Alphonsa Timbers and Traders Private Ltd, Kochi vs. ITO (TDS), Kochi

In the result, ITA Nos.241 & 242/COCH/2024 are allowed for statistical purposes and ITA Nos

ITA 928/COCH/2022[2012-13]Status: DisposedITAT Cochin03 Jan 2025AY 2012-13

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri S. Rajeev, AdvocateFor Respondent: Smt. Leena Lal, Sr. DR
Section 206CSection 206C(1)Section 206C(7)Section 221(1)

Bse Limited, Fort, Mumbai vs. DCIT Circle 2(1)(1), Aaykar Bhavan

In the result, assessee’s appeal ITA No

ITA 2662/MUM/2024[2018-19]Status: DisposedITAT Mumbai02 Dec 2024AY 2018-19

Bench: SMT MS. PADMAVATHY S (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 115JSection 143(2)Section 14ASection 201Section 250Section 37(1)

ACIT-2(1)(1), Mumbai vs. Bse Ltd, Mumbai

In the result, assessee’s appeal ITA No

ITA 2440/MUM/2024[2018-19]Status: DisposedITAT Mumbai02 Dec 2024AY 2018-19

Bench: SMT MS. PADMAVATHY S (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 115JSection 143(2)Section 14ASection 201Section 250Section 37(1)

Punjab Infrastructure Development Board, Chandigarh vs. Commissioner of Income Tax (TDS) Chandigarh

ITA/408/2019HC Punjab & Haryana20 Nov 2024
Section 18Section 206Section 206CSection 260ASection 271C

Kiri Industries Ltd., Ahmedabad vs. The Pr. CIT, Ahmedabad-1, Ahmedabad

In the result, appeal of the assessee is allowed

ITA 422/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad23 Oct 2024AY 2018-19

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Tushar Hemani, Sr. Adv. & ShriFor Respondent: Shri A.P. Singh, CIT DR
Section 143(3)Section 144BSection 14ASection 201Section 263Section 36(1)(iii)Section 36(1)(va)Section 37Section 37(1)

Sikkim Distilleries Limited, East Sikkim vs. D.C.I.T. (TDS), Circle - 5, Gangtok

In the result, all the 12 appeals filed by the assessee are partly allowed for statistical purposes

ITA 1055/KOL/2024[2017-2018]Status: DisposedITAT Kolkata26 Aug 2024AY 2017-2018

Bench: Sri Sanjay Garg & Sri Sanjay Awasthi

Section 144Section 147Section 201Section 201(1)Section 206CSection 206C(7)