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TMI Blog2024 (6) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax at specified percentage of consideration of sales, as income tax. HELD THAT:- From the reading of various sub sections of sec 206C of the Act 61, it is clear that the tax collected by the assessee, under the provisions of this section, is the income tax portion of the buyer of the goods, which is collected by the assessee from the buyer, to be subsequently credited to the account of the Central Government within stipulated time frame provided by the statute. Sub section (6A) further provides that in case of failure of the assessee he shall be deemed to be an assessee in default in respect of the tax. The case of the assessee is covered by sub section (8), of the said section where the assessee has not paid the tax to the credit of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Smt. Priyanka Patel, Sr. DR ORDER Per: Udayan Dasgupta, JM: 1. This appeal is preferred against the order of the JCIT(A) - 12, Mumbai, passed u/s 250 of the Act 61, dated 15/09/2023, which has arisen out of the order of the CPC Bangalore passed u/s 143(1) of the Act 61. 2. The assessee has taken the following grounds: - 1. The CIT (Appeals) and the A.O. has erred in Confirming and making an addition of Rs. 4,83,000/- in the returned income on account of TCS payable in the Audit report 2. The CIT (Appeals) and the AO has erred in concluding that the TCS payable is claimed as an expenses by Appellant, in contradiction to the returned income filed by the appellant wherein TCS payable is not claimed as deduction 3. The CIT(Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove mentioned qualified reporting in TAR, the addition of Rs. 4,83,000/- has been made by CPC, Bangalore u/s 143(1), for violation of provisions of section 43B of the Act 61. 3.1 In the course of first appellate proceedings , the assessee pointed out before the JCIT(A) , that there has been a mistake in reporting the correct figure of TCS collection which is actually Rs. 4,10,834/- (instead of Rs. 4,83,000/- mentioned in tax audit report ), and has argued that the since the assessee has not made any claim of deduction of the above amount in the profit and loss account , the said amount is not hit by the provisions of section 43B of the Act 61, and as such the question of disallowing the deduction not claimed at all would not arise. 3.2 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e upheld. 6. We have heard the submission of both the parties and perused the materials on record including the paper book filed by the assessee. This is a case of tax collected at source by the assessee from the buyer. In the instant case the assessee is engaged in the business of trading in Scrap and the provisions of section 206C(1) of the Act 61, is applicable on him for collection of provisions of section 206C(1) of the Act 61, is applicable on him for collection of tax at specified percentage of consideration of sales, as income tax. 6.1 The relevant provisions of section 206C(1) is reproduced below for ready reference: 206C [(1) Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the [person responsible for----- collecting tax]. 6.2 From the reading of various sub sections of sec 206C of the Act 61, it is clear that the tax collected by the assessee, under the provisions of this section, is the income tax portion of the buyer of the goods, which is collected by the assessee from the buyer, to be subsequently credited to the account of the Central Government within stipulated time frame provided by the statute. Sub section (6A) further provides that in case of failure of the assessee he shall be deemed to be an assessee in default in respect of the tax. The ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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