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TMI Blog2024 (5) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... y assessee although belatedly before Commissioner (TDS) and as there was no time-limit provided in Section 206C(1A) to furnish declaration in Form no. 27C by buyers, delay in filing said declaration to prescribed authority would not be ground to deny benefit to assessee. In the case of Chandmal Sancheti [ 2017 (8) TMI 1182 - ITAT JAIPUR ] ITAT held that since no time limit is provided in Section 206C(1A) to make a declaration in Form 27 collected from buyers; hence delay in filing declaration shall not be ground to deny benefit of declaration to assessee. Looking into the instant facts, in the interest of justice, the entire matter is restored to the file of Assessing Officer to firstly, verify the veracity/genuineness of Form 27C submitted by the assessee with respect to the aforesaid parties, and if the same is found to be in order, to grant necessary relief, accordance with law. Secondly, the AO is also directed to carry out the necessary verification in terms of the directions given by Ld. CIT(A) with respect to the balance 17 parties, in respect of whom the assessee has already furnished Form 27BA - Appeal of the assessee is allowed for statistical purposes. - Smt. Annapurna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 206C of the Act. 4. In appeal, Ld. CIT(Appeals) observed that the assessee submitted Form 27C from 5 parties and the assessee submitted that in view of these Forms 27C, the assessee was not liable to collect TCS from these persons as per law. Further, with respect to 17 parties, the assessee furnished Form 27 BA and submitted that in view of proviso to Section 206C(6A), since the respective parties had filed return of income, the amount of demand with respect to these entities from whom Form 27BA has been obtained, is liable to be reduced. The Ld. CIT(Appeals) held that so far as furnishing of Form 27C from 5 parties is concerned, the transaction which is under consideration had taken place in Financial Year 2011-12, whereas the assessee had furnished Form 27C during the course of appellate proceedings in January 2017, which is almost after a period of 5 years after the sale had taken place, and therefore such late deposit of Form 27C is not acceptable. Further, CIT observed that out of the overall sale of metal scrap to various parties amounting to Rs. 3,07,68,942/-, the assessee has furnished copies of Form 27C amounting to Rs. 72,65,051/- only. Therefore, in respect of above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t contention of the Counsel for the assessee is that since Section 206(1A)/(1B) of the Act read with Rule 37C(3) does not specify any timeline for submission of Form 27C, then the assessee should be permitted to furnish the aforesaid Form even at later stage, so long as the genuineness of the aforesaid Forms are not doubted by the Department. It would be useful to reproduce the relevant extracts of Section 206(1A) and 1(B) of the Act for ready reference: Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. 206C. (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 earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax: . (1A) Notwithstanding anything contained in sub-Section (1 ), no collection of tax shall be made in the case of a buyer, who is resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be made. The main thrust of sub-Section (1A) of Section 206C is to make a declaration as prescribed, upon which liability to collect tax at source under sub-Section (1) would not apply; when there was no dispute about such a declaration being filed in a prescribed Format and there was no dispute about genuineness of such declaration, delay in filing said declaration would not make assessee liable for non-collection of TCS. In the case of Gopallal Ramprasad Kabra 149 taxmann.com 291 (Rajkot - Trib.) , the ITAT held that where assessee-company sold scrap without collecting TCS, since, Form no. 27C was submitted by assessee although belatedly before Commissioner (TDS) and as there was no time-limit provided in Section 206C(1A) to furnish declaration in Form no. 27C by buyers, delay in filing said declaration to prescribed authority would not be ground to deny benefit to assessee. In the case of G.K. Traders 143 taxmann.com 425 (Rajkot - Trib.) , the ITAT held that where assessee-company sold scrap to various companies and failed to submit a statement in Form 27C comprising of buyer's declaration to prescribed authority in time, since there was no limit provided in Section 206 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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