Rule 37C — the law in short
What the courts have decided on section Rule 37C, 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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Manoj Kumar Jain, Prop. M/s Balaji Re-Rolling Mills v ITO (TDS), Kota
ITATHelps taxpayerValidity unconfirmed
I collected the Form 27C declarations late and filed them late with the TDS officer. Can the department still raise a TCS demand on me?
On this order, no. The Jaipur Tribunal held that where there is no dispute that the declarations were made in the prescribed format and no dispute about their genuineness, a mere delay in filing the declaration does not defeat the claim, the breach being technical and liable to be condoned. It expressly noted that the Commissioner (Appeals) had relied on a Chennai Bench decision where Form 27C was not obtained within a reasonable time and Form 27BA was collected after a lapse of seven years, and held that those were not the facts before it.
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.