The assessee, a public sector undertaking, sold coal to buyers who submitted form 27C declarations under section 206C(1A) of the Income-tax Act, 1961 stating that the coal would be utilized for purposes of manufacturing, processing or producing articles or for generation of power and not for trading purposes. The Assessing Officer demanded tax collection at source for the assessment years, treating the assessee as “assessee-in-default” under section 206C, alleging that certain buyers used the coal for trading purposes despite submitting declaration in form 27C, and was of the view that the assessee was required to verify the genuineness of buyers who submitted form 27C declarations under section 206C(1A). The Tribunal deleted the tax collection at source demand, holding that once form 27C was duly filled and signed by the declarant and received by the assessee, and the seller’s portion was forwarded to the Revenue authorities within the prescribed time limit and that the assessee should not be held responsible if any buyers gave false statements in form 27C. Appeal of revenue dismissed.(AY. 2013-14 to 2018-19)