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| The Tax Publishers2020 TaxPub(DT) 1212 (Jod-Trib) : (2020) 203 TTJ 0764 INCOME TAX ACT, 1961
Section 206C(7)
AO himself admitted that assessee had furnished copies of IT Returns filed by buyers and provided copies of Form No. 27C received from buyers but said form were found to be incomplete. However, nowhere it was stated by AO that assessee was required to collect taxes. Therefore, levy of interest by AO under section 206C(7) on the basis that copies of the Form No. 27C furnished by assessee were incomplete, was not justified.
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Tax collection at source - Leviability of interest under section 206C(7) - Assessee furnished Form No. 27C received from buyers and same found incomplete or undated by AO -
Assessee challenged levy of interest under section 206C(7) on the ground that all the sales of lignite were made to manufactures who had filed declaration in Form No. 27C to assessee and, therefore, assessee was not liable to collect tax at source under section 206C. However, AO levied. However, interest under section 206C(7) was charged considering assessee as one in default as Form No. 27C received from buyer were found to be incomplete with no date mentioned therein.Held: AO himself admitted that assessee had furnished the copies of IT Returns filed by buyers and provided copies of Form No. 27C received from buyers but said form were found to be incomplete. However, nowhere it was stated by AO that assessee was required to collect taxes. Therefore, levy of interest by AO under section 206C(7) on the basis that copies of the Form No. 27C furnished by assessee were incomplete was not justified.
Supported by:KPG Enterprise v. ITO Appeal No. ITA No. 2384/Ahd/2012, Order, dated 14-8-2014.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
IN THE ITAT, JODHPUR BENCH
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