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TMI Blog2016 (3) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... indeed justified in granting the impugned relief. As for the appeals filed by the assessee against the order passed by the CIT(A) in the first round, these appeals are now infructuous as the relief is granted to the assessee by the AO while giving effect to the directions of the CIT(A) in the second round which now stands confirmed and approved by us. - I.T.A. Nos. 348 and 349/RJT/2015, I.T.A. Nos. 337 and 338/RJT/2014 - - - Dated:- 29-2-2016 - Pramod Kumar AM and Kul Bharat JM For The Assessing Officer : C S Anjaria For The Assessee : Sagar Shah ORDER Per Pramod Kumar: 1. This set of four appeals, containing two appeals each from the assessee and the Assessing Officer, pertain to the same assessee, involve a common issue arising out of the similar set of facts, and were heard together. As a matter of convenience, therefore, we are disposing of all these four appeals by way of this common order. 2. Let us first take a look at the appeals filed by the Assessing Officer. By way of these appeals, the Assessing Officer appellant has called into question correctness of two separate but materially similar orders dated 31st October 2014 passed by the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ₹ 4,80,598 raised on the assessee under section 206C(6)/ 206(7) of the Income Tax Act, 1961 for the assessment years 2010-11 and 2011-12 respectively 5. Grievances raised by the assessee, which are common to other the yearsexcept for variation in the amounts, are as follows: 1. The order passed by the learned CIT(A), as well as by the ITO, is bad in law and bad on facts. 2. The learned CIT(A), as well as learned ITO, has erred in law and on facts by considering the trading of used discarded items as scrap defined in section 206C(1) of the Income Tax Act, 1961, which was neither generated out of any manufacturing activity nor from any of mechanical working of materials at any point of time, which was at all the time of previous sales, finished product and due to non usage of it, is being discarded and worded as used scrap. 3. The learned CIT(A), as well as learned ITO, has erred in law and on facts, by invoking provisions of section 206C of the Income Tax Act, 1961, since the purchaser of used discarded items does not fall within the meanings of buyer given in section 206C of the Income Tax Act, 1961. 4. The learned CIT(A), as well as learned ITO, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected the assessee to furnish form 27BA in the prescribed format and the Assessing Officer to verify the details. He further held that wherever the buyers have complied with section 206C, by furnishing the requisite form 27BA, to that extent, the assessee should not be held to the assessee in default. The CIT(A) further held that the sale of ingots does not amount to sale of scrap, and the related demand was deleted. With these directions, the matter was remitted to the file of the Assessing Officer. 7. Aggrieved by the order so passed by the CIT(A), the assessee is in appeal before us. His contention is that the provisions of Section 206C(1) donot apply at all to the scrap material traded by him. 8. In the meantime, giving effect to the directions of the CIT(A), the Assessing Officer deleted demand in respect of sale of ingot. However, as regards the remaining sales, the Assessing Officer noted that since the assessee is not conclusively able to establish that the sales was included in purchases of the buyers and the profits earned by them on these purchases were offered to tax, relief cannot be granted. The assessee once again proceeded in appeal before the CIT(A). The CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TION OF TAX DEDUCTION AT SOURCE (TDS) AND TAX COLLECTION AT SOURCE (TCS) PROVISIONS In order to provide clarity regarding discharge of tax liability by the resident payee on payment of any sum received by him without deduction of tax, it is proposed to amend section 201 to provide that the payer who fails to deduct the whole or any part of the tax on the payment made to a resident payee shall not be deemed to be an assessee in default in respect of such tax if such resident payee (i) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the payer furnishes a certificate to this effect from an accountant in such form as may be prescribed. The date of payment of taxes by the resident payee shall be deemed to be the date on which return has been furnished by the payee. It is also proposed to provide that where the payer fails to deduct the whole or any part of the tax on the payment made to a resident and is not deemed to be an assessee in default under section 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v. CIT, 224 ITR 677 (SC). Keeping in view the fact that the first proviso to sub-section (6A) of section 206C not only seeks to rationalize the provisions relating to collection of tax at source but is also beneficial in nature in that it seeks to provide relief to the collectors of tax at source from the consequences flowing from non/short collection of tax at source after ensuring that the interest of the Revenue is well protected, we have no hesitation to hold that the said proviso would apply retrospectively and therefore to both the assessment years under appeal. We therefore direct the assessee to appear before the Assessing Officer along with relevant documents as stipulated by the first proviso to sub- section (6A) of section 206C within two months of the date on which this order is pronounced upon which the AO shall examine the claim of the assessee in the light of the said provisions and pass appropriate order accordingly in conformity with law after giving reasonable opportunity of hearing to the assessee. Thus the issue raised in additional ground no. 3 stands restored to the file of the AO with the aforesaid observations. 46. In view of the foregoing, both t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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