The Dy.CIT, Circle-3(1)(2), Ahmedabad V. M/s. Raghuvir Exim Ltd., Ahmedabad

ITA 2767/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5614 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: GM THAKOR
• Keywords: Tax effect; TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 2767/AHD/2017 & C.O. NO. 32/AHD/19 (ASSESSMENT YEAR: 2011-12) DCIT, CIRCLE-3(1)(2), AHMEDABAD RAGHUVIR EXIT LTD. KASHIRAM MILL COMPOUND, NR. GUJARAT BOTTLING, RAKHIAL, AHMEDABAD- 380023 V/S V/S RAGHUVIR EXIT LTD. KASHIRAM MILL COMPOUND, NR. GUJARAT BOTTLING, RAKHIAL, AHMEDABAD- 380023 DCIT, CIRCLE-3(1)(2), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAACR 7492N APPELLANT BY : SHRI LALIT P. JAIN, SR. D .R. RESPONDENT BY : SHRI G. M. THAKOR, A.R. ( )/ ORDER DATE OF HEARING : 25 -09-201 9 DATE OF PRONOUNCEMENT : 26 S -09-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO. 2767/AH D/17 & C.O. 32/AHD/19 . A.Y. 2011-12 2 1. THIS APPEAL BY THE REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-7, AHMEDABAD DA TED 08.09.2017 PERTAINING TO A.Y. 2011-12 AND FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE REVENUE: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 1,22,16,748/-MADE BY THE A.O. ON ACCOUNT OF NON-DED UCTION OF TDS ON COMMISSION TO FOREIGN PARTIES. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD. COMMISSIONER OF INCOME-TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER IN RESPECT OF ABOVE ISSUES. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE R ESTORED. 2. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHOLDS PERTAIN ING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY RE VENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT R S.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE. 3. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED THE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL O F THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICA BILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 4. IN VIEW OF THE ABOVE SAID CIRCULAR, APPEAL OF THE R EVENUE IS DISMISSED. ITA NO. 2767/AH D/17 & C.O. 32/AHD/19 . A.Y. 2011-12 3 NOW WE COME C.O. NO. 32/AHD/20 19 5. AT THE TIME OF HEARING AND AFTER DISMISSING THE APP EAL OF THE REVENUE, LD. COUNSEL FOR THE ASSESSEE REQUESTED THAT HE DOES NOT WANT TO PRESS THE CROSS OBJECTION. THEREFORE, SAME MAY BE DISMISSED AS NOT PRESSED. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED AND APPEAL FILED BY THE C.O. OF THE ASSESSEE IS ALSO DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 26- 09- 2019 SD/- SD/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 26/09/2019 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD