ITO TDS 1(1)(3), MUMBAI V. BEVENUE INFRA PROJECTS P.LTD, MUMBAI

ITA 2356/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8393 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2017
• Appeal Filed By: Department
• Bench Allotted: J
• Next Hearing Date: 13-02-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 24-04-2015
• Court: TRIBUNAL
• Department Lawyers: SAMBIT MISHRA
• Assessee Lawyers: DEVKI SHAH
• Keywords: Tax effect
• Section: 194C; 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO. 2356/M/2015 (AY 2011 - 2012) ITO (TDS) - 1(1)(3), R.NO.806, K.G. MITTAL HOSPITAL BLDG, CHARNI ROAD, MUMBAI - 002. / VS. M/S. BEVENUE INFRA PROJECTS PVT LTD., 9/10, ADI HOUSE, GOKHLE ROAD (N), DADAR (W), MUMBAI 400 0028. ./ PAN : AACCB7624A ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SAMBIT MISHRA / RESPONDENT BY : MS. DEVKI SHAH , DR / DATE OF HEARING : 13 .02.2017 / DATE OF PRONOUNCEMENT : 13 .02.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 24.4.2015 IS AGAINST THE ORDER OF THE CIT (A) - 59, MUMBAI DATED 25.2.2015 FOR THE ASSESSMENT YEAR 2009 - 2010. IN THIS APPEAL, REVENUE RAISED THE FOLLOWING SOLITARY GROUND WHICH READS AS UNDER: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A) ERRED IN DELETING THE SHORT DEDUCTION U/S 201(1) AND INTEREST U/S 201(1A), HOLDING THAT THE ASSESSEE WAS LIABLE TO DEDUCTION TAX U/ 194C AND NOT U/S 194J OF THE ACT WITHOUT APPRECIATING THE CORRECT N ATURE OF THE SERVICES AND THE FACT THAT THE BOOKS OF ACCOUNT OF THE ASSESSEE SHOWED THE FEES AS PROFESSIONAL FEES PAID FOR THE SERVICES RENDERED BY SHRI AJAY PHANSEKAR PROPRIETOR OF M/S. SWAMINI CONSTRUCTION. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BRIEFLY NARRATED THE FACTS OF THE CASE AND DEMONSTRATED THAT THE TAX EFFECT INVOLVED IN THIS CASE IS RS. 3,66,649/ - IE BELO W RS. 10 LAKHS. THEREFORE, THIS CASE IS COVERED BY THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 WHICH IS RELEVANT FOR THE PROPOSITION THAT THE APPEALS FILED BY THE REVENUE WITH A TAX EFFECT OF RS. 10 LAKHS AND BELOW ARE TO BE EITHER DISMISSED BY THE TRIBUNAL AS NOT MAINTAINABLE OR NOT PRESSED BY THE REVENUE. 2 3 . AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINION, CONSIDE RING THE LOW TAX EFFECT INVOLVED IN THE PRESENT CASE IE BELOW RS. 10 LAKHS, THE INSTANT APPEAL FILED BY THE REVENUE IS REQUIRED TO BE DISMISSED SINCE, THE SAME ARE NOT MAINTAINABLE. ACCORDINGLY I ORDER. 4 . IN THE RESULT, BOTH THE APPEAL S FILED BY THE REVE NUE ARE DISMISSED. ORDER PRONOUNCE D IN THE OPEN COURT ON 13 TH FEBRUARY, 2017. SD/ - SD/ - (PAWAN SINGH) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 13.02.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI