2006 TAX. L. R. 538 ::2006 (286) ITR 136 ::2006 (203) Cur Tax Rep 505 ::2006 (195) Taxation 16

Karnataka High Court

Hon'ble Judge(s): V. Gopala Gowda, Jawad Rahim , JJ

(A) Tax deducted at source - Trade in liquor - Buyer" - Assessee public sector undertaking manufacturing arrack - Assessee selling arrack to contractors who have acquired lease hold rights from State to vend liquor in retail - Lease hold rights were admittedly conferred on contractors by way of public auction - Plea of assessee that rights were conferred on contractors 'in any other manner' and therefore they were exempted from payment of tax under S. 206-C is not tenable - Assessee is also not buyer of liquor but manufacturer and seller - Exemption under S. 206-C(11), Cl. (a) (ii) is also not applicable. Income-Tax Act (43 of 1961) , S.206C— (Para 29 30) (B) Assessment - Assessing Officer - Jurisdiction - Delegation of powers of Chief Commissioner of I. T. - Power to assess tax under S. 206-C not expressly delegated on assessing officer - Assessing Officer does not lose power thereby. Income-Tax Act (43 of 1961) , S.120— (Para 33) .....