The DCIT, TDS Circle, Ahmedabad V. M/s.Nirma Limited, Ahmedabad

ITA 3272/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9621 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 06-01-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 23-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D V SINGH
• Keywords: Tax effect
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA K. YADAV, JUDICIAL MEMBER ./ ITA NO. 3272/AHD/2015 / ASSESSMENT YEAR: 2011-12 DCIT, TDS CIRCLE, AHMEDABAD .. APPELLANT VS M/S. NIRMA LIMITED, NIRMA HOUSE, ASHRAM ROAD, AHMEDABAD .. RESPONDENT PAN : AAACN 5350 K REVENUE BY : SHRI D.V. SINGH, DR ASSESSEE(S) BY WRITTEN SUBMISSION / DATE OF HEARING 06 / 01 /201 6 /DATE OF PRONOUNCEMENT 03 / 0 2 / 201 6 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-8, AHM EDABAD DATED 14.09.2015 FOR ASSESSMENT YEAR 2011-12, ON THE FOLLO WING GROUNDS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS OF THE CASE IN ALLOWING APPEAL OF THE ASSESSEE THAT TDS HAS TO BE MADE @ 1% U/S 194C INSTEAD OF TDS @ 2% ON PAYMENTS MADE TO FAMILY TRUST. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) OUGHT TO HAVE DECIDED THE ISSUE UNDER REFERENC E IN THE LIGHT OF EVIDENCE OBTAINED BY HIM DURING THE APPEL LATE PROCEEDINGS AFTER FOLLOWING THE DUE PROCEDURE OF LA W. 3. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUN D OR ADD A NEW GROUND, WHICH MAY BE NECESSARY. 4. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE CANCELLED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED TO THE ABOVE FACT. ((SMC) ITA NO. 3272/AHD/2015 DCIT VS. NIRMAL LIMITED AY 2011-12 2 2. AT THE OUTSET, IT IS POINTED OUT THAT THE ASSESSEE HAS F ILED A LETTER DATED 04.01.2016, VIDE WHICH THE ASSESSEE PLEA DED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 2.1 I HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, I FIND THAT REVENUE IS AGGRIEVED BY THE OR DER OF CIT(A) IN ALLOWING THE APPEAL OF THE ASSESSEE THAT TDS HAS TO BE MADE @1% U/S 194C INSTEAD OF TDS @ 2% ON PAYMENTS MADE TO FAMIL Y TRUST. I ALSO FIND THAT THE TAX EFFECT OF THE APPEAL UNDER CONSID ERATION IS RS.7,45,804/- (EXCLUDING INTEREST). AS PER THE ANNOUN CEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO.21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE T RIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST, EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO TH E PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPU TED FACT THAT THE TAX EFFECT IS LESS THAN RS.10 LACS, I AM OF THE VIEW TH AT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID C BDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTM ENT AND ((SMC) ITA NO. 3272/AHD/2015 DCIT VS. NIRMAL LIMITED AY 2011-12 3 THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCO UNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, I DISMISS THE APPE AL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 3RD FEBRUARY, 2016 AT AHMEDABAD. SD/- ( SHAILENDRA K. YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 03/02/2016 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / DR, ITAT, AHMEDABAD 6. (- . / GUARD FILE. / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD