M A MAJEED Vs. DIVISIONAL FOREST OFFICER

JUDGEMENT

(1.) SEC . 206C of the IT Act, 1961 requires a seller referred to in s. 44AC to collect from the buyer of any goods of the nature specified, a sum equal to the percentage specified in the table. Accordingly for timber obtained by any mode other than under a forest lease, a sum equal to 10% is to be collected. The petitioner herein had participated in the auction of timber, notified by the first respondent. Petitioner tendered the amount along with 5% income-tax for the total amount. It is alleged that the first respondent insisted payment at the rate of 15.75%. Ext. P3 is the communication sent by the first respondent requiring the petitioner to pay at the rate of 15.75% of the total amount. Petitioner contends that what is payable is only 5% of the sale proceeds excluding the sales-tax and forest development tax and, therefore, Ext. P3 is illegal. Petitioners have, therefore, prayed for issue of a writ of mandamus or direction to the first respondent to collect the income-tax only at the rate of 5% from the petitioners for the price of Albizia trees which they have purchased in auction and which were mentioned in Exhibit P 3. Petitioners also seek the issue of a direction to the first respondent to declare that the entire purchase as per Exhibit P1 made by the petitioners will come under the table in Exhibit P 2 as "timber obtained by any mode other than under a forest lease"and the petitioners are liable to pay income-tax only at the rate of 5%.

(2.) NOTICE has been taken on behalf of the respondents and both sides are heard.