I.T.O., JANJGIR CHAMPA V. SMT SUMITRA SINGH, JANJGIR-CHAMPA (C.G.)

ITA 108/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8956 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 23-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P CHAUDHARY
• Assessee Lawyers: R B DOSHI
• Keywords: Tax effect
• Section: 194C; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH , RAIPUR BEFORE : SHRI N.S.SAINI, A M & SHRI PAV AN KUMAR GADALE, J M ITA NO. 108 / RPR /20 1 5 (ASSESSMENT YEAR : 20 05 - 20 06 ) ITO, JANJGIR - CHAMPA V S SUMITRA SINGH, PROP. M/S SINGH TRANSPORT, VILL. PISSOD, JANJGIR - C HAMPA (C.G) P AN NO. : A VOPS 7701 D (APPELLANT ) .. TSEDNEPSER REVENUE BY : SHRI O.P.CHAUDHARY , DR ASSESSEE BY : SHRI R .B.DOSHI , AR DATE OF HEARING : 1 9 / 01 /201 8 DATE OF PRONOUNCEMENT 19 / 01 /201 8 / O R D E R PER SHRI N.S.SAINI , A M : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A ), BILASPUR , DATED 1 4.04.2015 FOR THE ASSESSMENT YEAR 20 05 - 2006 . 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL : - 1 WHETHER THE LD. CIT (A) IS JUSTIFIED IN DELETING THE ADDITION MADE BY THE AO BY DECIDING THE ISSUE THAT SEC. 40 (A)(IA) OF THE IT ACT, 1961 HAS MENTION THE INDIVIDUAL IN THE LIST OF SPECIFIED PERSON FROM 01.06.2007. 2. WHETHER THE LD. CIT (A) IS JUSTIFIED IN IGNORING TH E PROVISO INSERTED WITH EFFECT FROM 01.06.2002 BELOW SUB SECTION 2 OF SECTION 194C THAT AN INDIVIDUAL OR HINDU UNDIVIDED FAMILY HAS TO DEDUCT TAX AT SOURCE IN CASE TOTAL TURN - OVER OR GROSS RECEIPT EXCEEDS THE SPECIFIED LIMIT U/S 44AB. SEC. 40(4)(IA) OF THE IT ACT PROVIDES THAT EXPENDITURE ON WHICH TAX IS DEDUCTIBLE AT SOURCE UNDER CHAPTER XVII - B SHALL NOT BE ALLOWABLE IF THE ASSESSEE HAD FAILED TO MAKE SUCH DEDUCTION OF TAX AT SOURCE. 3. THE APPELLANT CRAVES FOR LEAVE TO RAISE THE GROUNDS OF APPEAL. 3. AT THE TIME OF HEARING THE AR OF THE ASSESSEE FILED A COMPUTATION SHOWING THAT THE TAX EFFECT IN THE PRESENT APPEAL FILED BY THE REVENUE IS BELOW RS.10 LAKHS. HE SUBMITTED THAT IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, APPE AL FILED BY THE REVENUE IS NOT MAINTAINABLE AND, HENCE, LIABLE TO BE DISMISSED. ITA NO. 108 /RPR/201 5 2 4. ON THE OTHER HAND, LD.DR FOR THE REVENUE HAS NOT CONTROVERTED THE SUBMISSIONS OF LD.AR OF THE ASSESSEE T HAT TAX EFFECT IN THE PRESENT APPEAL OF THE REVENUE WAS BELOW RS.10 LAKHS. 5. WE FIND THAT THE CBDT IN CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, HAS STATED THAT, AS A MEASURE FOR REDUCING LITIGATION, IT WAS INCREASING THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT. THE SAID LIMIT FOR NOT FILING APPEAL TO THE TRIBUNAL WAS FIXED AT RS.10 LAKHS. THE CBDT HAS FURTHER STATED THAT THE SAID INSTRUCTION SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AND THAT ALL APPEALS BELOW THE SPECIFIED TAX LIMITS SHOULD BE WITHDRAWN/NOT PRESSED. HOWEVER, APPEALS BEFORE THE SUPREME COURT ARE TO BE GOVERNED BY THE LIMITS OPERATIVE AT THE TIME THAT THE APPEAL WAS FILED. THE SAID CIRCULAR OF THE CBD T IS BINDING ON THE OFFICERS OF INCOME TAX DEPARTMENT. IN VIEW OF THIS, WE HOLD THAT THE PRESENT APPEAL OF THE REVENUE BEFORE THE TRIBUNAL IS NOT MAINTAINABLE AND, HENCE, WE DISMISS THE SAME IN LIMINE . 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY , THE 19 TH DAY OF JANUARY, 2018 AT RAIPUR. SD/ - ( PAVAN KUMAR GADALE ) SD/ - (N. S. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER RAIPUR ; DATED 19/ 01/2018 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT ITA NO. 108 /RPR/201 5 3 / BY ORDER, ( SENIOR PRIVATE SECRETARY ) INCOME TAX APPELLATE TRIBUNAL, RAIPUR 5. , , RAIPUR / DR, ITAT, RAIPUR 6. / GUARD FILE. //TRUE COPY//