ITO, New Delhi V. Shri Rohit Jain, New Delhi

ITA 39/DEL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6779 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 04-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 02-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJEEV JAIN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC-3 NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO.-39/ DEL/2015 (ASSESSMENT YEAR- 2010-11) ITO, WARD-32(4), NEW DELHI. (APPELLANT) VS ROHIT JAIN, C-1/33, SAFDARJUNG DEVELOPMENT AREA, NEW DELHI-110016. PAN-AAIPJ9606P (RESPONDENT) APPELLANT BY SH.DEEPAK GARG, SR.DR RESPONDENT BY SH. RAJEEV JAIN, ADV. ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 17.10.2014 OF CIT(A)-XXIII, NEW DELHI PERTAINING TO 2010-11 ASSESSMENT YEAR ON THE FOLLOWING GROUND: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN HOLDING THAT NO PAYMENT IN THE NATURE OF BROKERAGE/COMMISSION LIABLE TO TAX DEDUCTION AT SOU RCE U/S 194H OF THE ACT AND HENCE NOT HIT BY THE PROVISIONS OF SECT ION 40(A)(IA) OF THE ACT, HAS BEEN MADE BY THE ASSESSEE TO HIS CLIENTS W HO HAD BOOKED FLATS IN VARIOUS PROJECTS THROUGH HIM AND ONLY DISC OUNTS WERE OFFERED TO THE CLIENTS WHEREAS THE ASSESSEE ADMITTEDLY STAT ED IN HIS LETTER DT. 23.01.2013 THAT THEY HAVE DEDUCTED TDS ON THE PAYME NTS WHICH HAVE BEEN SHOWN AS DISCOUNT IN THE NEXT ASSESSMEN T YEAR.' 2. IT WAS A COMMON STAND OF THE PARTIES BEFORE THE BENCH THAT BY WAY OF THE PRESENT APPEAL THE CHALLENGE IS POSED TO THE ADDITI ON OF RS.23,18,228/- BY THE REVENUE AND IN VIEW OF CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 OF CBDT THE TAX EFFECT BEING LESS THAN RS.10 LAKH THE APPEA L IS NOT MAINTAINABLE. 3. HAVING HEARD THE SUBMISSIONS OF THE PARTIES ON T HIS ISSUE AND PERUSED THE MATERIAL ON RECORD, I FIND THAT THE CBDT VIDE THE A FORESAID CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LAKH FOR FILING THE APPEAL BY DATE OF HEARING 04.07.2016 DATE OF PRONOUNCEMENT 25.07.2016 I.T.A .NO.-39/ DEL/2015 PAGE 2 OF 2 THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL . PARA 3 OF THE AFORESAID CIRCULAR FIXING THE MONETARY LIMIT HAS BEEN MADE AP PLICABLE VIDE PARA 10 RETROSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRE CEDENT THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX ACT, 1961 ARE BINDING ON THE AUTHORITIES , THE DEPARTMENTAL APPEAL IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 25 TH JULY, 2016. SD/- (DIVA SINGH) JUDICIAL MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI