Where assessee hospital had sold old medical equipments, under buyback arrangement, to its vendors against purchase of new machinery, such sale could not be categorized as ‘scrap sale’; therefore, no TDS was to be deducted under section 206C

The word ‘scrap’ itself in ordinary parlance presupposes manufacture, processing or industrial activity.

In running a medical hospital question of generation of scrap is inconceivable. Therefore provisions of s.206C of the Act, ‘Prima Facie’ are not applicable to the assessee.

 

Dr. Balabhai Nanavati Hospital[2017] 86 taxmann.com 107 (Mumbai – Trib.) SEPTEMBER  8, 2017