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TMI Blog2016 (12) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... Denesh Goyal, Advocate, Ms. Radhika Suri, Senior Advocate, with Ms. Rinku Dahiya, Advocate S.J. VAZIFDAR, C.J. (ORAL) The petitioners seek a writ of certiorari to quash a clarification dated 16.08.2016 issued by respondent No. 2 - Deputy Commissioner of Income Tax (TDS), Ludhiana stating that cotton waste is scrap within the meaning of the term under Section 206C of the Income Tax Act, 1961 (in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant reads as under:- "206C. Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap etc. - (1) Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Initially, a clarification was issued on 24.05.2016 stating that cotton waste is not covered under the definition of scrap contained in Section 206C(1) read with explanation (b). By a further communication dated 29.06.2016, the department stated as under:- "Keeping in view the judgements and findings of the authorities (supra), it is made clear that no TCS applicability arises on the sale of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as High Court in the case of The Commissioner of Income Tax Ward-1(3), Coimbatore Vs M/s Adisankara Spinning Mills (P) Ltd. (Madras) has not been accepted by the department. The statement that the matter is pending before the Supreme Court is, however, admittedly incorrect. The matter referred to does not concern this issue. Be that as it may, as of now, the department has not accepted the content ..... X X X X Extracts X X X X X X X X Extracts X X X X
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