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TMI Blog2021 (11) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appropriate authorities and thus complied with the spirit of the law, details including copies of Form 27C as well as copy of the Income Tax Returns and taxes paid therein for the Assessment Year 2013-14 were filed by the Buyers. The same were not considered by the AO as well as the CIT(A). CIT(A) dismissed the appeal of the assessee by observing that the buyers did not submit Form 27C at the purchase of iron ore and confirmed the order of the AO. It was amended later on and Form 27C placed before us - as agreed by both the parties, we set aside the order of the authorities below and remit the matter back to the file of the AO to verify the documents as submitted by the assessee i.e. Form 27C required for considering the case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant considerations and without material on record, have concluded that the assessee has not collected tax at source (TCS) from buyers on sale of iron ore for the period July 2012 to March 2013 and the tax levied of ₹ 55,12,849/- is contrary to facts, arbitrary, unjustified, erroneous, bad in law and legally untenable. 4. That, the learned CIT(Appeals), holding that the buyers of iron ore filed their Income tax returns and paid taxes is not backed by any evidence, (ignoring the documents, supportings and evidence filed in the Paper Book in this regard), is incorrect, wrong and contrary to facts, arbitrary, erroneous and bad, both in the eye of law and on facts. 5. That on the facts and in the circumstances of the case, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case, there is non/short collection of tax at source (TCS) from the buyers, the buyers of iron ore having already filed their Income tax returns for the Assessment Year 2013-14 (relating to the Previous Year 2012-13), the levy of tax and interest of ₹ 55,12,849/- and ₹ 4,53,320/- u/s. 206C(6) and 206(7) of the Act respectively is arbitrary, unjustified, erroneous and bad in law. 11. The assessee denies its liability for the levy of the interest of ₹ 4,53,320/- u/s. 206(7) of the Act. and the charging of the said interest is incorrect, erroneous and legally untenable. 3. Ld. A.R. of the assessee submitted that the assessee Firm is engaged in the business of mining of iron ore having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubaneswar], subsequently by the Order dated 07/06/2013 came to the conclusion that the assessee has collected the declaration after the sale of the goods and therefore, having violated the provisions of Section 206C of the Act is an assessee in default and demanded Tax of ₹ 59,66,169 (Tax of ₹ 55,12,849/- and Interest of ₹ 4,53,320/-) thereon. 4. Ld. A.R. further submitted that the assessee has duly collected TCS @ 1% on sale of iron ore w.e.f. 1.7.2012 from the Buyers who are not using the goods for the purpose of manufacturing, processing or producing articles of things or for the purpose of generation of power and may be for trading purposes and has duly deposited the said tax so collected with the Central Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods so bought are for the purpose of manufacturing, processing or producing articles of things and not for trading purposes although belatedly and also has produced evidences regarding the Buyers of goods having filed the IT returns and paid taxes thereon for the Assessment Year 2013-14, the assessee ought not be burdened with tax demand by treating the assessee as assessee in default U/S 206C of the Act. He, accordingly, submitted that in the interest of Revenue if the case is remitted back to the Assessing Officer to verify the documents/submitted and pass orders in accordance with law after giving an opportunity to the assessee to represent its contention and file any other documents in this regard since all the tax demands stand alrea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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