2000 (2) TMI 790 - SC - Income Tax

Licences issued by the Government permitting the licensee to carry on liquor trade the provisions of Section 206-C are not attracted as the licensee does not fall within the concept of buyer referred to in that Section. Buyer has to be buyer of goods and not merely a person who acquires a licence to carry on the business - SLP dismissed.

Summary

The Supreme Court ruled that Section 206-C of the Income Tax Act applies when a payment gives the buyer specific goods or the right to receive them. A licensee obtaining a license from the government to conduct business does not automatically qualify as a buyer under this section. Therefore, the provisions of Section 206-C are not applicable to licensees in liquor trade. The Special Leave Petition was dismissed.