ITO, Ghaziabad V. Shri Arun Kumar, Ghaziabad

ITA 4481/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8365 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-03-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 26-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Assessee Lawyers: SH
• Keywords: Tax effect
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH.PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A .NO.-4481/DE L/2013 (ASSESSMENT YEAR-2006- 07) ITO, WARD-1(3), GHAZIABAD. (APPELLANT) VS SH. ARUN KUMAR, L/H OF LATE KISHORE KUMAR, PROP. MAA DURGA TRADERS, R/O-160/2, RAM NAGAR, GHAZIABAD. PAN-AEYPA3549Q (RESPONDENT) APPELLANT BY SH.K.K.JAISWAL, DR RESPONDENT BY SH. PANCHAM SETH, CA, & ARPIT MITTAL, CA ORDER PER DIVA SINGH, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 15.05.2013 OF CIT(A), GHAZIABAD PERTAINING TO 2006-07 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: 1. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS A ND CIRCUMSTANCES OF THE CASE, IN ALLOWING THE EXPENSES OF RS.22,53,817/ -. 2. THAT THE LD.CIT(A HAS ERRED IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE, IN NOT APPRECIATING THE FACT THAT THE ASS ESSEE FAILED TO DEDUCT TDS ON THE PAYMENT OF RS.22,53,817/- UNDER THE HEAD S FREIGHT AND CARTAGE AS PER PROVISION OF SECTION 194C OF THE I.T . ACT, 1961 AND EXPENSES U/S 40(A)(IA) WERE NOT ALLOWABLE. 3. HENCE ORDER OF THE LD.CIT(A) DESERVES TO BE REVERSE D/SET ASIDE AND THE ORDER OF THE AO MAY BE RESTORED. 2. CONSIDERING THE AMOUNT AT STAKE FOR THE REVENUE, BOTH THE PARTIES WERE REQUIRED TO ADDRESS CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 OF CBDT. ON CONSIDERATION OF THE FACTS ON RECORD AND THE AFO RESAID CIRCULAR OF THE CBDT , DATE OF HEARING 22.03.2016 DATE OF PRONOUNCEMENT 01.04.2016 I.T.A .NO.-4481/DEL/2013 PAGE 2 OF 2 THE LD. SR. DR FAIRLY CONCEDED THAT THE DEPARTMENTA L APPEAL HAS BEEN FILED WHEREIN THE TAX EFFECT INVOLVED IS MUCH LESS THAN R S.10 LAKH. 3. WE HAVE HEARD THE SUBMISSIONS OF THE PARTIES ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE CBDT VIDE THE AFORESAID CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LAKH FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL . VIDE PARA 10 OF THE AFORESAID CIRCULAR PARA 3 HAS BEEN MADE APPLICABLE RETROSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRECEDENT THAT THE BOARDS INSTRU CTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX A CT, 1961 ARE BINDING ON THE AUTHORITIES, WE DISMISS THE DEPARTMENTAL APPEAL CON SIDERING THE MATERIAL AVAILABLE ON RECORD. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 01 ST APRIL, 2016. SD/- SD/- (PRASHANT MAHARISHI) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01/04/2016 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI