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TMI Blog2018 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... Reddy, AM And Shri A. T. Varkey, JM For The Appellant : Shri Sourabh Gupta, AR For The Respondent : Shri G. Mallikarjuna, CIT, DR ORDER Per Shri A.T.Varkey, JM All these appeals filed by the assessee against the orders of Ld. CIT(A)-24, Kolkata dated 16.11.2015 for AYs. 2010-11 to 2012-13. Since grounds are identical and facts are common, we dispose of all these appeals by this consolidated order and takes the AY 2010- 11 as the lead case, and the result of it will be applied for all the assessment years. 2. The only issue to be decided in these appeals is as to whether the assessee could be said to have violated the provisions of section 206C of the Income-tax Act, 1961 (hereinafter referred to as the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessee. The AO not being satisfied with the replies of the assessee, treated the assessee as an assessee in default for failure to collect tax at source in terms of section 206C(1) of the Act. On first appeal, the Learned CIT(A) held that sawn timber is not different from timber . The ld CIT(A) noted that even in the submission of the assessee before the AO sawn timber is claimed to be different but after sawing the assessee still calls the sawed item as sawn timber . Accordingly, he held that the assessee s claim that items being sold are not timber has no force and, therefore, he observed that there is no material to show that the AO s order needs to be varied and, therefore, he dismissed the appeals of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot timber. We have to decide whether the timber could be different from sawn timber. The term timber and sawn timber is not defined in the Act. For this purpose, we find lot of force in the arguments of the Learned AR and the documents relied upon by him. We find from the tender document floated by Himachal Pradesh State Forest Development Corporation Limited for Timber, in para 14 under the caption Restriction of Sale etc , it is mentioned as below:- 14. No purchaser shall sell timber purchased by him to another party while such timber is lying in the Corporation depot. No sawing or conversion of timber is to be permitted in the depot premises under any circumstances what so ever . This particular restrictive covenant in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing activity. 6.3. We find that the Learned CIT(A) had placed reliance on the decision of the Hon ble Supreme Court in the case of Deputy CIT vs Pio Food Packers reported in 46 STC 63 SC , that :- Further, in the case of State of Orissa vs Patel Mills (37 STC 392 Ori) held that purchasing logs or timber, sawing them into planks, sleepers, etc., amount to manufacture. Hence it could be safely concluded that the timber is different from sawn timber and hence the provisions of section 206C of the Act would not be applicable to the assessee. 6.4. We find that the Learned CIT(A) had given a categorical finding that the sawn timber were sold by the assessee to the persons who were engaged in manufacturing and pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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