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Once the assessee has accepted the goods purchased from the railway as scrap and allowed the TCS then the resale of the same goods by the assessee will not part take a different character. Therefore, in view of the undisputed fact that what was purchased by the assessee is scarp subjected to TCS then the resale of the same material is also be treated as scrap and there is no scope of re-classification of the these goods at the time of sale.

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Sec. 206C of the Income-tax Act, 1961 - Collection of tax at source - The contention of the assessee that some of the sales considered by the AO as scrap was actually sale of new goods. The AO has considered the sale on the basis of the spot verification. However, now the assessee has also placed certain sale bills in support of his contention that the sales to the extent of Rs. 1,88,60,145/- is sale of new iron goods and not scrap. Since, this is a factual aspect of the matter and needs proper a verification. Therefore, ITAT aside on this issue to the record of the AO for verification of the same by considering the evidence filed by the assessee and then decide the same. - PRAMOD KUMAR JAIN V/s ITO - [2020] 206 TTJ 025 (UO)(ITAT-JAIPUR)