BIKUL DAS Vs. STATE OF ASSAM

JUDGEMENT

(1.) THESE writ petitions involved the common question of fact as well as common question of law and, therefore, these petitions are taken up together for disposal.

(2.) THE subject -matter involved here is related to the levy and collection of tax at source under s. 206 of the IT Act in respect of profits and gains of trading in alcoholic liquor. The facts and the legal issues set forth in Civil Rule No. 1423 of 1995 (Hemanta Baruah vs. State of Assam) would only be taken up for consideration in adjudicating the issues involved in these cases. The petitioners at all relevant times are/were lessees of country spirit shops under the Assam Excise Act, 1910, and the Assam Excise Rules, 1945. The trade of country spirit is regulated by the Assam Excise Act, 1910, and the Rules framed thereunder.

(3.) THE scope of the provision is explained in the Finance Bill, 1992. As a sequel to the amendment as cited above, the Asstt. CIT, TDS, by his memo, dt. 18th Aug., 1994 (Annexure -A), brought to the notice about the insertion of S. 44AC in the INCOME TAX ACT, 1961, and also subsequent deletion of the same by the Finance Act, 1992, and that similar provisions have been made in the new S. 206C of the INCOME TAX ACT, 1961, w.e.f. 1st April, 1992. By the said letter, the Asstt. CIT, TDS, Panbazar, Guwahati, communicated to the Government that every person being a seller of the specified goods is required to collect income -tax at source from the "buyer" at the specified rates mentioned in the said communication. The Asstt. CIT by his letter, dt. 18th Aug., 1994, vide No. C - I/Act/TDS/94 -95 sent the following communication to the Commissioner of Excise :