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Gujarat High Court

Jatin B. Shah - Prop. M/S Payal Metal ... vs Income Tax Officer (Tds) - ... on 26 August, 2014

Author: Harsha Devani

Bench: Harsha Devani, Sonia Gokani

        O/TAXAP/675/2014                                ORDER




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       TAX APPEAL NO. 675 of 2014

================================================================
JATIN B. SHAH - PROP. M/S PAYAL METAL CORPORATION....Appellant(s)
                             Versus
            INCOME TAX OFFICER (TDS) - 3....Opponent(s)
================================================================
Appearance:
MR TUSHAR P HEMANI, ADVOCATE for the Appellant(s) No. 1
MS VAIBHAVI K PARIKH, ADVOCATE for the Appellant(s) No. 1
================================================================

        CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI
               and
               HONOURABLE MS JUSTICE SONIA GOKANI

                            Date : 26/08/2014


                             ORAL ORDER

(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) Heard Ms. Vaibhavi Parikh, learned advocate for the appellant.

Admit.

The following substantial questions of law arise for consideration;

(A) Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in interpreting the definition of "scrap" given in clause (b) to Explanation to S.206C of the Income Tax Act so as to mean that both the words "waste" and "scrap" are two different and distinct words and the conditions of the same being generated from manufacture or mechanical Page 1 of 2 O/TAXAP/675/2014 ORDER working goes only with the later word scrap and not with the earlier word waste?

(B) Whether, in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the discarded brass items being traded by the appellant fall within the ambit of "Scrap" as defined vide explanation (b) to section 206C of the Act in spite of the fact that the such items are not an outcome of manufacture or mechanical working of materials?

(C ) Whether, in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the provisions of section 206C as to collection of tax at source are applicable to the appellant in spite of the fact that the appellant is merely a "Trader" and not a "manufacturer" in his own right?"

The appellant has proposed as many as nine questions, the above referred questions would cover all the nine questions.
(HARSHA DEVANI, J.) (MS SONIA GOKANI, J.) Vahid Page 2 of 2