ACIT, New Delhi V. M/s. JDS Apparels Ltd., New Delhi

ITA 1711/DEL/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6647 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 11-01-2017
• Assessment Year: misc
• Appeal Filed On: 26-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ONIL CHANDRA
• Keywords: Tax effect
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 1711 & 1712/DEL/2015 ASSESSMENT YEARS: 2010-11 & 201 1-12 ACIT, CIRCLE 75(1), VS. M/S JDS APPARELS LTD., ROOM NO. 503, AYAKAR J-21-A, CENTRAL MARKET, BHAWAN, LAXMI NAGAR LAJPAT NAGAR, DELHI NEW DELHI 24 (PAN: DELJ04099E) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RAKESH KUMAR, SR. D R RESPONDENT BY : SH. ONIL CHANDRA, CA ORDER THESE APPEALS FILED BY THE DEPARTMENT ARE DIRECTED AGAINST THE SEPARATE ORDERS BOTH DATED 05.1.2015 OF LD. CIT(A)- 13, NEW DELHI PERTAINING TO ASSESSMENT YEAR 2010-11 & 2011-12. 2. THE GROUNDS RAISED IN ITA NO. 1711/DEL/2015 (AY 2010-11) READ AS UNDER:- I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE DEFA ULT U/S. 201(1) ON ACCOUNT OF GATEWAY PAYMENT CHARGES WITHOU T TAKING INTO ACCOUNT CBDTS NOTIFICATION NO. 56/2012 DATED 1.1.2013 WHEREIN TDS ON GATEWAY CHARGES WAS DISPENSED WITH W.E.F. 1.1.2013. II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE DEFA ULT ON ACCOUNT OF PROVISION MADE IN THE BOOKS OF ACCOUNT BECAUSE TDS HAS TO BE MADE ON PAYMENT OR CREDIT WHICHEVER IS EARLIER. 2 III) WITHOUT PREJUDICE TO THE ABOVE WHETHER THE LD. CIT(A) HAS ERRED IN DELETING THE INTEREST CHARGES U/S. 201(1A) CONSEQUENT TO THE ABOVE TWO DEFAULTS U/S. 201(1) OF THE INCOME TAX ACT, 1961. IV) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AME ND ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. 3. THE GROUNDS RAISED IN ITA NO. 1712/DEL/2015 (AY 2011-12) READ AS UNDER:- I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE DEFA ULT U/S. 201(1) ON ACCOUNT OF GATEWAY PAYMENT CHARGES WITHOU T TAKING INTO ACCOUNT CBDTS NOTIFICATION NO. 56/2012 DATED 1.1.2013 WHEREIN TDS ON GATEWAY CHARGES WAS DISPENSED WITH W.E.F. 1.1.2013. II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE DEFA ULT ON ACCOUNT OF PROVISION MADE IN THE BOOKS OF ACCOUNT BECAUSE TDS HAS TO BE MADE ON PAYMENT OR CREDIT WHICHEVER IS EARLIER. III) WITHOUT PREJUDICE TO THE ABOVE WHETHER THE LD. CIT(A) HAS ERRED IN DELETING THE INTEREST CHARGES U/S. 201(1A) CONSEQUENT TO THE ABOVE TWO DEFAULTS U/S. 201(1) OF THE INCOME TAX ACT, 1961. IV) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AME ND ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. 3 4. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSES SEE HAS STATED THAT THE TAX EFFECT IN THE PRESENT APPEALS ARE BELO W PRESCRIBED LIMIT OF RS.10 LACS, HENCE, HE REQUESTED THAT THE APPEALS O F THE REVENUE MAY BE DISMISSED. 4.1 HOWEVER, THE LD. SR. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MA TERIAL ON RECORD. I NOTE THAT THE TAX EFFECT IN THIS CASE IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007 -ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVAN T PARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S NO APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMIT S PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECI DED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, 4 THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NO T PRESSED THE PRESENT APPEALS, IN VIEW OF THE AFORESAID INSTRUCT IONS SINCE THE TAX EFFECT IN THE INSTANT APPEALS IS LESS THAN THE AMOU NT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, I AM OF THE VIEW THAT THE REVENUE SHOULD HAVE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE TH E TRIBUNAL. I AM ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APP LICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/02/2017. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 15/02/2017 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR