M/s.Excel Timbers P. Ltd, Calicut V. The ITO, Calicut

ITA 170/COCH/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2136 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-11-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 03-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S BINDHU
• Assessee Lawyers: P RAGHUNATHAN
• Keywords: Additional evidence; Revised return
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJAR I, AM & SHRI GEORGE GEORGE K, JM ITA NO. 83 /COCH/2017 : ASST.YEAR 2010 - 2011 ITA NO.84/COCH/2017 : ASST.YEAR 2011 - 2012 ITA NO.85/COCH/2017 : ASST.YEAR 2012 - 2013 ITA NO.86/COCH/2017 : ASST.YEAR 2013 - 2014 ITA NO.87/COCH/2017 : ASST.YEAR 2014 - 2015 M/S. EXCELLENT TIMBER IMPORTS & EXPORTS PVT. LTD. C/O.M/S.RAGHUNATH & ASSOCIATES, ADVOCATES 2 ND FLOOR, LAKSHMI BUILDING KANNUR ROAD, CALICUT 673 001. PAN : CHNE OO 0939D . VS. THE INCOME TAX OFFICER (TDS) KOZHIKODE. (APPELLANT) (RESPONDENT) ITA NO.170/COCH/2017 : ASST.YEAR 2010 - 2011 ITA NO.171/COCH/2017 : ASST.YEAR 2011 - 2012 ITA NO.172/COCH/2017 : ASST.YEAR 2012 - 2013 ITA NO.173/COCH/2017 : ASST.YEAR 2013 - 2014 ITA NO.174/COCH/2017 : ASST.YEAR 2014 - 2015 M/S. EXCEL TIMBERS PVT.LTD. C/O.M/S.RAGHUNATH & ASSOCIATES, ADVOCATES 2 ND FLOOR, LAKSHMI BUILDING KANNUR ROAD, CALICUT 673 001. PAN : CHNEOOO0935E . VS. THE INCOME TAX OFFICER (TDS) KOZHIKODE. (APPELLANT) (RESPONDENT) APPELLANT S BY : SRI. P. RAGHUNATHAN RESPONDENT BY : SMT.A.S.BINDHU DATE OF HEARING : 1 4 .11.2018 DATE OF PRONOUNCEMENT : 15 .11.2018 O R D E R PER BENCH: THESE 10 APPEALS AT THE INSTANCE OF TWO ASSESSEES ARE DIRECTED AGAINST TWO CONSOLIDATED ORDERS OF THE CIT(A) DATED 27.12.2016 AND 09.01.2017 . SINCE COMMON ISSUES ARE RAISED ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 2 IN THESE APPEALS, THEY ARE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER. 2. THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS: - THE ASSESSEES ARE DEALERS IN TIMBER. IT IMPORTS TIMBER FROM MYANMAR AND SELLING TO VARIOUS RETAILERS AND OTHER CUSTOMERS. THE ASSESSING OFFICER FOUND THAT THE ASSESSEES WERE NOT COLLECTING TAX AT SOURCE AS PER THE PROVISIONS OF SECTION 206C OF THE I.T.ACT. ACCORDINGLY, THE ASSESSING OFFICER PASSED ORDER U/S 206C, MAKING THE ASSESSEES LIABLE FOR TAX AND INTEREST. THE DETAILS OF THE TAX LIABILITY AND INTEREST LIABILITY IN THE CASE OF M/S.EXCELLENT TIMBER IMPORTS & EXPORTS PRIVATE LIMITED READS AS FOLLOWS: - A SST.YEAR TAX COLLECTIBLE U/S 206C(1) (RS.) INTEREST U/S 206C(7) (RS.) TOTAL (RS.) 2010 - 2011 2,64,249 1,41,336 4,05,585 2011 - 2012 4,66,923 2,15,936 6,82,859 2012 - 2013 4,18,898 1,20,371 5,39,269 2013 - 2014 93,350 13,454 1,06,804 2014 - 2015 6,85,965 35,239 7,21,204 2.1 THE DETAILS OF TAX LIABILITY U/S 206(1) AND INTEREST LIABILITY U/S 206C(7) IN THE CASE OF M/S.EXCEL TIMBERS PRIVATE LIMITED, READS AS FOLLOWS: - ASST.YEAR TAX COLLECTIBLE U/S 206C(1) (RS.) INTEREST U/S 206C(7) (RS.) TOTAL (RS.) 2010 - 2011 5,90,469 3,28,637 9,19,106 2011 - 2012 10,26,349 4,20,594 14,46,943 2012 - 2013 12,04,417 3,72,772 15,77,189 2013 - 2014 11,99,483 2,29,365 14,28,848 2014 - 2015 21,88,551 1,45,046 23,33,597 ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 3 2 . 2 IT WAS SUBMITTED THAT THE ABOVE ORDERS PASSED U/S 206C(6) AND 206C(7) OF THE ACT WERE CHALLENGED BEFORE THE HONBLE HIGH COURT OF KERALA IN WRIT PETITIONS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA. IT WAS SUBMITTED THAT THE CONTENTION TAKEN B EFORE THE HONBLE HIGH COURT WAS THAT SECTION 206C(6) CANNOT APPLY TO CASES WHERE TIMBER IS IMPORTED INTO THE COUNTRY BUT APPLIES ONLY WHEN TIMBER IS OBTAINED THROUGH A FOREST LEASE OR OBTAINED THROUGH ANY OTHER MODE OTHER THAN A FOREST LEASE. IT WAS STATED THAT THE HONBLE HIGH COURT DISMISSED THE WRIT PETITIONS FILED BY THE ASSESSEE AND THE SAME WAS CONFIRMED BY THE DIVISION BENCH. 3 . IN THE MEANWHILE THE ASSESSEE S HAD ALSO FILED APPEALS BEFORE THE FIRST APPELLATE AUTHORITY. THE CIT(A) REJECTED THE APPEALS BY PLACING RELIANCE ON THE JUDGMENT OF THE HONBLE HIGH COURT OF KERALA IN THE CASE OF EXCEL TIMBER PVT. LTD. VS. DCIT AND ITO(TDS) (2015) 232 TAXMANN 279. 4 . AGGRIEVED BY THE ORDERS OF THE CIT(A), THE ASSESSEE S HAVE PREFERRED THESE APPEALS B EFORE THE TRIBUNAL. A PETITION UNDER RULE 29 OF THE ITAT RULES, 1963 AND AN AFFIDAVIT OF THE MANAGING DIRECTOR S OF ASSESSEE - COMPANIES FOR ADMISSION OF ADDITIONAL EVIDENCES WAS FILED . THE ADDITIONAL EVIDENCES NOW SOUGHT TO BE ADMITTED ARE FORM NO.27C DECLARATIONS AND THE DECLARATIONS COUNTERSIGNED BY THE CHARTERED ACCOUNTANT STATING THAT CERTAIN BUYERS OF TIMBER FROM THE ASSESSEE S HAD INCLUDED THE SAME IN THEIR TURN OVER AND HAVE DULY PAID TAXES ON IT. THE CRUX OF THE AFFIDAVIT BY THE MANAGING DIRECTO R S FOR ADMISSION OF THE ADDITIONAL EVIDENCES IS THAT PROVISION OF ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 4 SECTION 206C OF THE I.T. ACT WAS IN THE STATUTE FROM THE YEAR 1993 AND IN THE PAST YEARS, THERE WERE NO PROCEEDINGS INITIATED AGAINST THE ASSESSEE S U/S. 206C OF THE ACT. IT IS STATED IN THE AFFIDAVIT THAT FOR THE FIRST TIME, PROCEEDINGS WERE INITIATED ONLY IN THE FINANCIAL YEAR 2011 - 12. IT WAS SUBMITTED THAT THE ASSESSEE S OBJECTED TO THE ORDERS PASSED U/S. 206C AND FILED WRIT PETITIONS BEFORE THE HONBLE HIGH COURT OF KERALA, BONA FIDE BEL IEVING THAT THE PROVISIONS OF SECTION 206C DOES NOT HAVE APPLICATION TO IT. THEREFORE , IT WAS SUBMITTED THAT THE DECLARATIONS IN FORM NO. 27C AS PER RULE 37C OF THE I.T. RULES COULD NOT BE OBTAINED FROM THE BUYERS IN TIME. IT IS SUBMITTED IN THE AFFIDAVI T THAT DURING THE PENDENCY OF THE WRIT PETITIONS FILED BEFORE THE HONBLE HIGH COURT OF KERALA, THE ASSESSEE S TOOK STEP TO OBTAIN DECLARATIONS IN FORM NO. 27C AS MANDATED UNDER RULE 37C OF THE I.T. RULES AND DECLARATIONS COUNTERSIGNED BY THE CHARTERED ACCO UNTANT, AND HENCE ASSESSEE S WERE NOT LIABLE FOR TCS BY VIRTUE OF SECTION 206C(1A) OF THE ACT AND PROVISO TO SECTION 206C(6A) OF THE ACT. IT WAS SUBMITTED THAT GROUNDS WERE TAKEN BEFORE THE CIT(A) THAT ASSESSEE S ARE NOT LIABLE FOR TCS BY VIRTUE OF SECTION 206C(1A) AND PROVISO TO SECTION 206C(6A) OF THE I.T. ACT. HOWEVER, THE CIT(A) WITHOUT ADJUDICATING THE ABOVE GROUNDS, DISMISSED THE APPEALS OF THE ASSESSEE S EX PARTE FOLLOWING THE SINGLE BENCH JUDGMENT OF THE HONBLE HIGH COURT OF KERALA IN THE CASE OF EXCEL TIMBER PVT. LTD. VS. DCIT & ITO(TDS) (SUPRA) . THE RELEVANT PORTION OF THE AFFIDAVIT STATING THE REASONS FOR NON - FURNISHING OF FORM 27C ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 5 DECLARATIONS AND DECLARATIONS COUNTERSIGNED BY THE CHARTERED ACCOUNTANT READS AS FOLLOWS: - 7. WHEN THE APPEALS FILED BY THE APPELLANTS AS WELL AS OTHER ASSESSES IDENTICALLY PLACED WHO WERE REPRESENTED BY A COMMON AUDITOR WERE POSTED FOR HEARING BY THE APPELLATE AUTHORITY, IT WAS POINTED OUT THAT THE WRIT APPEALS WERE IN THE PROCESS OF BEING HEARD. HOWEVER, WIT HOUT CONSIDERING THE SAID REQUEST, THE APPELLATE AUTHORITY, AS PER ORDERS DATED 27.12.2016 DISMISSED ALL THE APPEALS PLACING RELIANCE ON THE DECISION OF THE LEARNED SINGLE JUDGE IN EXCEL TIMBER PVT. LTD. VS. DEPUTY COMMISSIONER OF INCOMETAX & INCOMETAX O FFICER (TDS) (2015) 232 TAXMANN 279 AND WITHOUT CONSIDERING THE ADDITIONAL GROUNDS RAISED SPECIFICALLY IN THE APPEALS. 8. IN THE CIRCUMSTANCES, THE PETITIONERS WERE UNABLE TO FILE, AS EVIDENCE, THE DECLARATION OBTAINED BY THEM FROM THE BUYERS WHICH W OULD CONCLUSIVELY SHOW THAT THE PETITIONERS WERE NOT REQUIRED TO COLLECT TAX AT SOURCE. IN THE SAME MANNER, THE PETITIONERS HAVE BEEN ABLE TO GET DETAILS LIKE PAN OF THOSE BUYERS WHO HAVE NOT ISSUED DECLARATIONS BASED ON WHICH THE ASSESSING AUTHORITIES ARE ENTITLED TO MAKE ENQUIRIES. IT MAY BE NOTED THAT SINCE THE PROCEEDINGS WERE INITIATED MUCH AFTER THE ASSESSMENT YEARS WERE OVER AND IN VIEW OF THE FACT THAT THOUGH THE PROVISION HAS BEEN IN EXISTENCE FROM 01.04.1993 AND THE OFFICERS HAD ALWAYS MAINTAI NED THAT CASES LIKE THE PETITIONERS WERE NOT COVERED BY SEC. 206C, THE PETITIONERS HAD NOT OBTAINED THE DECLARATIONS AND OTHER EVIDENCES IN TIME. 9. FURTHER, AT THIS DISTANCE OF TIME, THOUGH THE PETITIONERS ARE FOUND LIABLE TO PAY TCS AND AMOUNTS ARE DEMANDED FROM THEM, THE PETITIONERS WILL NOT BE ABLE TO COLLECT SUCH AMOUNTS FROM THE BUYERS AND AT THE SAME TIME, THE BUYERS WILL NOT BE ABLE TO FILE REVISED RETURNS AND CLAIM REFUND OF SUCH AMOUNTS. ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 6 10. THE DOCUMENTS PRODUCED AS ANNEXURE TO THIS APPLICA TION WOULD VERY CLEARLY SHOW THAT THE PETITIONERS ARE NOT LIABLE TO BE ASSESSED AND FOUND LIABLE TO PAY TCS. THE PETITIONERS WILL BE PUT TO IRRECOVERABLE LOSS AND INJURY IF THE DOCUMENTS PRODUCED AS ANNEXURE ARE NOT RECEIVED IN EVIDENCE IN THE ABOVE APPEA LS. 4 . 1 IT WAS FURTHER SUBMITTED BY THE LEARNED AR THAT AN IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN THE CASE OF THE SISTER - CONCERNS OF THE ASSESSEE, VIZ., (I) M/S.HILLWOOD IMPORTS AND EXPORTS PVT. LTD. [ITA NOS.106 TO 111/COCH/2017], (II) M/S.HILLWOOD FURNITURE (P) LTD. [ITA NOS.112 TO 117/COCH/2017], AND (III) M/S.HILLWOOD TIMBERS [ITA NOS.118 TO 120/COCH/2017] . IT WAS STATED THAT THE TRIBUNAL VIDE ITS ORDER DATED 11.09.2017, ADMITTED THE IDENTICAL ADDITIONAL EVIDENCE FILED BY THE ASSESSEE S IN THOSE CASE ON RECORD AND RESTORED THE CASES TO THE A.O.S DIRECTING HIM TO CONSIDER THE CASE AFRESH IN ACCORDANCE WITH LAW IN LIGHT OF ADMISSION OF ADDITIONAL EVIDENCE. 4.2 THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ASSESSMENT ORDER AND T HE ORDER OF THE CIT(A). 5 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND AN IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN ASSESSEES SISTER - CONCERNS (SUPRA). IN THE ABOVE SAID ORDERS OF THE TRIBUNAL, THE ADDITIONAL EV IDENCE FILED WAS TAKEN ON RECORD AND CASE RESTORED TO THE A.O. TO CONSIDER WHETHER THE ASSESSEE WAS LIABLE FOR TAX COLLECTION AT SOURCE ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 7 U/S 206C OF THE I.T.ACT. THE RELEVANT FINDING OF THE TRIBUNAL IN THE CASE OF ASSESSEES SISTER - CONCERNS, READS AS FOLLOWS : - 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, THERE WAS A SURVEY U/S. 133A OF THE ACT IN ASSESSEES BUSINESS PREMISES ON 20/01/2014. IN THE COURSE OF SURVEY, IT WAS NOTICED THAT THE ASSESSEE HAD NOT COLLECT ED TAX AT SOURCE WITH REGARD TO SALES MADE LOCALLY OUT OF IMPORTED TIMBER. THE HONBLE HIGH COURT HAD DECIDED THAT THE ASSESSEE IS LIABLE TO COLLECT TAX AT SOURCE UNDER THE PROVISIONS OF SECTION 206C OF THE ACT ON SALES MADE LOCALLY OUT OF IMPORTED TIMBER . THE ONLY PLEA OF THE ASSESSEE IN THESE CASES ARE THAT BY VIRTUE OF PROVISION OF SECTION 206C(1A), WHEN FORM NO. 27C DECLARATIONS AS MANDATED UNDER RULE 37C OF THE I.T. RULES ARE FURNISHED, THE ASSESSEE IS NOT LIABLE FOR TCS. SECTION 206(1A) STATES THAT WHEN THE BUYERS OF TIMBER FROM THE ASSESSEE HAD UTILIZED THE TIMBER FOR THE PURPOSE OF MANUFACTURE, PROCESSING OR PRODUCING OTHER ARTICLE OR THING AND IT WAS NOT FOR TRADING PURPOSES PER SE, ASSESSEE NEED NOT MAKE TCS, PROVIDED BUYERS FURNISH FORM NO. 27C DECLARATIONS. FURTHER, THE ASSESSEES CONTENTION IS THAT BY VIRTUE OF PROVISO TO SECTION 206C(6A) OF THE I.T. ACT, WHEN THE BUYERS OF TIMBER FROM THE ASSESSEE HAD DULY PAID TAXES ON IT, THE ASSESSEE CANNOT BE TREATED AS AN ASSESSEE IN DEFAULT. THE PROVIS O TO SECTION 206C(6A) IS EFFECTIVE FROM 1.7.2012. 8.1 WHEN ORDERS U/S. 206C OF THE ACT WERE RECEIVED, THE ASSESSEE CHALLENGED THE SAME BY FILING WRIT PETITIONS BEFORE THE HONBLE HIGH COURT OF KERALA. THE CONTENTION BEFORE THE HONBLE HIGH COURT WAS THAT ASSESSEE IS NOT LIABLE UNDER THE PROVISIONS OF S ECTION 206C SINCE THE TIMBER SOLD BY IT WAS IMPORTED AND NOT OBTAINED UNDER FOREST LEASE OR ANY OTHER MODE OTHER THAN FOREST LEASE. HOWEVER, THE SINGLE JUDGE OF THE HONBLE HIGH COURT DISMISSED THE W.P.S AND FURTHER APPEALS WERE PREFERRED BY THE ASSESSEE BEFORE THE DIVISION BENCH. WHEN THE APPEALS WERE PENDING BEFORE THE DIVISION BENCH OF THE HONBLE HIGH COURT, THE CIT(A) DISMISSED THE APPEALS OF THE ASSESSEE RELYING ON THE SINGLE JUDGES JUDGMENT OF THE HONBLE HIGH COURT OF KERALA. BEFORE THE CIT(A), THE ASSESSEE HAD RAISED THE GROUNDS THAT IT IS NOT LIABLE FOR TCS BY VIRTUE OF SECTION 206C(1A) OF THE ACT AND PROVISO TO SECTION 206C(6A) OF THE ACT (GROUND NOS. 4 & 5 RAISED BEFORE THE CIT(A)). WHEN THE ASSESSEE FILED THE WRIT PETITIONS BEFORE THE HONB LE HIGH COURT OF KERALA STATING THAT IT IS NOT LIABLE FOR TCS PROVISIONS U/S. 206C OF THE ACT, THE ASSESSEE WAS NOT IN A POSITION TO OBTAIN FORM 27C DECLARATIONS AS MANDATED UNDER RULE 37C OF THE I.T. RULES. NOW THE ASSESSEE HAS FURNISHED FORM NO. 27C DEC LARATIONS AND THE DECLARATIONS WHICH ARE COUNTERSIGNED BY THE CHARTERED ACCOUNTANT STATING THAT CERTAIN BUYERS OF TIMBER FROM THE ASSESSEE HAD PAID ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 8 THE TAXES ON THE SAME. THESE FORM NO. 27C DECLARATIONS AND DECLARATIONS COUNTERSIGNED BY THE CHARTERED ACCOU NTANT ARE SOUGHT TO BE ADMITTED AS ADDITIONAL EVIDENCES. THESE ADDITIONAL EVIDENCES NOW PRODUCED BEFORE THE TRIBUNAL GO TO THE ROOT OF THE ISSUE AS REGARDS NON - LIABILITY OF THE ASSESSEE FOR TCS AS MENTIONED U/S. 206C(1A) OF THE ACT AND PROVISO TO SECTION 206C(6A) OF THE ACT. WHEN THESE DECLARATIONS ARE VITAL PIECE OF EVIDENCES AS REGARDS THE ISSUE OF LIABILITY OF THE ASSESSEE U/S. 206C OF THE ACT, IN THE INTEREST OF SUBSTANTIAL JUSTICE AND EQUITY, WE ARE OF THE VIEW THAT THE SAME NEEDS TO BE ADMITTED AS A DDITIONAL EVIDENCES AND WE ADMIT THE SAME ON RECORD. 8.2 WHEN THE ADDITIONAL EVIDENCES ARE TAKEN ON RECORD, THE SAME NECESSARILY NEEDS TO BE EXAMINED BY THE ASSESSING OFFICER AND FOR ABOVE STATED PURPOSE, THE ENTIRE ISSUE IS RESTORED TO THE FILE OF TH E ASSESSING OFFICER. THE ASSESSEE SHALL PROVE WITH NECESSARY MATERIAL/EVIDENCES THAT IT IS NOT LIABLE FOR TCS BY VIRTUE OF PROVISIONS OF SECTION 206C(1A) OF THE ACT AND PROVISO TO SECTION 206C(6A) OF THE ACT (WITH EFFECT FROM 1.7.2012). 8.3 AS REGARDS THE TIME LIMIT MENTIONED FOR FURNISHING FORM NO. 27C DECLARATION (SECTION 206C(1B) OF THE ACT), WE ARE OF THE VIEW THAT IN ORDER TO GET THE BENEFIT U/S. 206C(1A) OF THE ACT, FILING OF FORM NO.27C DECLARATION AS MANDATED UNDER RULE 37C OF THE I.T. R ULES IS MANDATORY, HOWEVER, THE TIME FOR FURNISHING THE DECLARATION BEFORE THE CIT OR PRINCIPAL CIT IS ONLY DIRECTORY. IN TAKING THE ABOVE STAND, WE ARE FORTIFIED BY THE VIEW TAKEN BY THE BANGALORE BENCH OF THE ITAT IN THE CASE OF LAKSHMI SAW MILLS VS. IT O IN I.T.A. NOS. 685 TO 690/BANG/2013 (ORDER DATED 21/03/2014). MOREOVER, THE WORDING IN SECTION 206C(1B) IS FURNISHING OF FORM NO. 27C DECLARATION ON OR BEFORE THE SEVENTH DAY OF THE NEXT FOLLOWING MONTH IN WHICH THE DECLARATION IS FURNISHED TO THE ASSES SEE. IN THE INSTANT CASE, AS STATED IN THE PRECEDING PARAGRAPHS, THE ASSESSEE HAD FILED W.P. BEFORE THE HONBLE HIGH COURT THAT IT WAS NOT LIABLE FOR TCS UNDER THE PROVISIONS OF SECTION 206C OF THE I.T. ACT AND THEREFORE, THE MATTER WAS SUB JUDICE. IN TH E LIGHT OF THE ABOVE FACTUAL BACKGROUND, FORM NO. 27C DECLARATIONS, NEEDS FIRST TO BE EXAMINED BY THE AO AND HE SHALL FORWARD THE SAME TO PRINCIPAL CIT OR CIT AS THE CASE MAY BE. THE ASSESSING OFFICER SHALL ALSO EXAMINE THE DECLARATIONS COUNTERSIGNED BY T HE CHARTERED ACCOUNTANT STATING THAT THE BUYERS OF TIMBER FROM THE ASSESSEE HAD DULY PAID THE TAXES ON THE SAME. THE AO AFTER EXAMINING FORM 27C DECLARATIONS AND DECLARATIONS COUNTERSIGNED BY THE CA, SHALL TAKE A DECISION IN ACCORDANCE WITH LAW AFTER AFFO RDING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. IT IS ORDERED ACCORDINGLY. THEREFORE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 83 / COCH /201 7 & ORS . M/S. EXCELLENT TIMBER IMPORTS & EXPORTS P.LTD. & ANR. 9 5 . 1 IN VIEW OF THE ABOVE ORDER S OF THE TRIBUNAL (SUPRA) , WE DEEM IT APPROPRIATE TO ADMIT THE AD DITIONAL EVIDENCE AND RESTORE THE ISSUE TO THE A.O. TO CONSIDER WHETHER THE ASSESSEE IS LIABLE FOR TAX COLLECTION AT SOURCE U/S 206C OF THE I.T.ACT. 6 . IN THE RESULT, THE APPEAL S FILED BY THE ASSESSEE S ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUN CED ON THIS 15 TH DAY OF NOVEMBER, 2018 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K. ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN ; DATED : 15 TH NOVEMBER, 2018 . DEVDAS* COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), KOZHIKODE . 4. THE CIT (TDS) , KOCHI . 5. DR, ITAT, COCHIN 6 . GUARD FILE.