The ITO, TDS-1, Ahmedabad V. Air Control and Chemical Engineering, Ahmedabad

ITA 1896/AHD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94694 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 16-11-2015
• Assessment Year: 2014-2015
• Appeal Filed On: 25-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALA PHILIPSSR
• Keywords: Tax effect

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO.1896/AHD/2015 /BLOCK ASSTT. YEAR: 2014-2015 ITO, TDS - 1 AHMEDABAD. VS AIR CONTROL AND CHEMICAL ENGINEERING P.O. BAREJADI BAREJADI WESTERN RAILWAY AHMEDABAD 382 435. PAN : AABCA 6009 R %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI LALA PHILIPS,SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 16/11/2015 / DATE OF PRONOUNCEMENT: 17/11/2015 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF REVENUE AGAINST THE ORDER OF THE LD.CIT(A)-8, AHMEDABAD DATED 15.4. 2015 PASSED FOR THE ASSTT.YEAR 2004-15. 2. IN RESPONSE TO THE NOTICE OF HEARING NONE HAS CO ME PRESENT ON BEHALF OF THE ASSESSEE. WITH THE ASSISTANCE OF THE LD.DR, WE HAVE GONE THROUGH THE RECORD CAREFULLY. 3. IT EMERGES OUT FROM THE RECORD THAT THAT THE ASS ESSEE DID NOT FILE THE TDS STATEMENT UNDER SECTION 200(3) WITHIN DUE D ATE. IT HAS FILED AFTER EXPIRY OF THE LIMITATION. THE AO HAS IMPOSED PENALTY UNDER SECTION 234E OF THE ACT. ON APPEAL, THE ASSESSEE HAS RAISED TWO ISSUES BEFORE THE LD.CIT(A). IN THE FIRST FOLD OF GRIEVAN CE, IT CONTENDED THAT THE ITA NO.1896/AHD/2015 2 INTEREST REQUIRED TO BE COMPUTED ON THE AMOUNTS OUG HT TO BE CALCULATED FROM THE DATE OF DEDUCTION UPTO THE DATE OF PAYMENT . NUMBER OF MONTHS WILL BE TAKEN NOT AS CALENDAR MONTHS BUT BAS ED ON NUMBER OF DAYS TO BE DIVIDED BY 30 AND TAKING THE REMAINING D AYS OF LESS THAN 30 AS ONE COMPLETE MONTH. THIS PLEA WAS RAISED BY THE ASSESSEE ON THE STRENGTH OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. ARVIND MILLS LTD., 240 TAXMAN 38, WHERE THE ISSUE BEFORE T HE HONBLE COURT WAS CALCULATION OF INTEREST CHARGEABLE UNDER SECTIO N 244A. THE LD.FIRST APPELLATE AUTHORITY HAS UPHELD THE LEVY OF FINE UND ER SECTION 234E OF THE ACT, BUT ACCEPTED THE SECOND FOLD OF GRIEVANCE THAT THE TOTAL NUMBER OF DAYS FOR CHARGING INTEREST WILL BE COMPUTED FROM THE DATE OF DEDUCTION UPTO THE DATE OF PAYMENT BY DIVIDING THIS PERIOD BY 30 DAYS, AND THE REMAINING DAYS WILL BE CONSIDERED AS ONE MO NTH. THE REVENUE IS AGGRIEVED WITH THIS DIRECTION OF THE CIT(A). WH EN WE CONFRONTED THE LD.DR POINTING OUT THE TAX EFFECT INVOLVED IN THIS APPEAL, HE FAIRLY CONCEDED THAT THE TAX EFFECT BY VIRTUE OF ACCEPTANC E OF THIS GROUND BY THE CIT(A) IS LESS THAN RS.3,00,000/-. HE POINTED OUT THAT THE TAX EFFECT IS ROUGHLY LESS THAN RS.1,40,000/-. THE CBD T HAD ISSUED INSTRUCTION BEARING NO. 3/2011 [F. NO. 279/MISC. 142/2007-ITJ], DATED 9-2-2011 VIDE WHICH IT HAS BEEN PROVIDED THAT IF TH E TAX EFFECT BY VIRTUE OF CIT(A)S ORDER IS BELOW RS.3 LAKHS, THEN THAT OR DER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. IN VIEW OF THIS INSTRUCTION, THE PRESENT APPEAL IS NOT MAINTAINABLE , HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 17 TH NOVEMBER, 2015 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 17/11/2015