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TMI Blog2016 (6) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... ation in Form 27C at the time of purchase is only a technical default in nature? "Whether the Tribunal was correct in holding that the revenue had ample time to verify whether the buyers were indeed using wood pulp for manufacturing, processing or producing article or thing and not for trading?" 3. Whether the Tribunal was correct in treating only the delay in filing the declaration before CIT, which is not at all the issue in the order passed by ITO (TDS), thus giving decision which is beyond jurisdiction and the issue what Tribunal has not considered whether the lapse which the seller has committed by not obliging to collect tax in the absence of declaration by the buyer is condonable or not? We have heard Mr. Aravind, learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent ii) Tendu leaves Five per cent iii) Timber obtained under a forest lease Two and one- half per cent iv) Timber obtained by any mode other than under a forest lease Two and one - half per cent v) Any other forest produce not being timber or tendu leaves Two and one - half per cent vi) Scrap One per cent: Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No. 27C and shall be verified in the manner indicated therein. (2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax. (3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub- rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him. Explanation.-For the purposes of sub-rule (3), the Chief Commissioner or Commissioner means the Chief Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... default here were initiated on 10/10/2011 and assessee had before 31/10/2012 filed the Forms. Assessment years involved were assessment year 2009-10 to 2011-12 and there was much time left with the Revenue to verify whether the buyers were indeed using the wood pulp for manufacturing, processing or producing article or thing and not for trading and to proceed against them if they had furnished false declaration. We are therefore of the opinion assessee could not have been deemed as one in default under section 206C(6D) of the Act or liable for interest under section 206(7). Orders of the lower authorities were set aside." 5. The aforesaid shows that the Tribunal has interpreted the provisions of Section 206-C(1a) of the Income Tax Act by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, finding of the Tribunal regarding furnishing of the declaration by the buyer to the assessee run counter to Section 206-C(1) of the Act . Therefore, the question of law may arise for consideration. 8. We are unable to accept the contention of the revenue for the simple reason that effecting sale cannot be equated/correlated with the payment made pursuant to sale or by debit entries in the books of account s and therefore, the finding of the Tribunal cannot be considered to be in contravention to the provision of Section 206-C(1) of the Act. In any case, the Tribunal has found that even if there is a technical breach, sufficient compliance is made by the assessee more particularly, when it was not the case of the appellant- revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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