Section 206C(1B) — the law in short
What the courts have decided on section 206C(1B), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Girishkumar Ramnarayan Shah v ITO (TDS)
ITATCuts both waysValidity unconfirmed
I sold scrap without collecting TCS and only got the buyers' Form 27C declarations years later. Has the officer any answer to that, and what about buyers who have already paid tax?
The Tribunal held that neither s.206C(1A) nor s.206C(1B) prescribes any date by which the buyer must give the seller the declaration in Form 27C, so a belated declaration cannot be shut out where the seller shows he filed it as soon as he received it and its genuineness is not doubted. It restored the whole matter to the Assessing Officer to verify the Forms 27C and, separately, to give effect to the first proviso to s.206C(6A) for the buyers from whom Form 27BA had been obtained.
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M/s Sri Jayabharath Timber Depot v ITO (TDS), Tirunelveli
ITATHelps departmentValidity unconfirmed
I produced the buyers' Form 27C during the assessment, and later a Form 27BA from an accountant. The officer says both are too late. Is he right?
On this order, yes. The Chennai Tribunal read s.206C(1A) with s.206C(1B) and held that the seller must either collect TCS at the time of sale or obtain the Form 27C declaration and file a copy with the Commissioner by the seventh day of the month next following the month of receipt, so that a Form 27C produced for the first time during assessment proceedings is not within a reasonable time. It also rejected the alternative plea under the first proviso to s.206C(6A), holding that a Form 27BA obtained on 24 April 2021 — seven years after the end of the relevant assessment years — came too late for the immunity, and dismissed both appeals.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.