ACIT (TDS), Noida V. M/s. U.P. State Road Transport Corpotaion, Noida

ITA 4899/DEL/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7756 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 16-05-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 14-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO. 4899/DEL/2012 ASSESSMENT YEAR: 2007-08 ACIT (TDS), VS. M/S U.P. STATE ROAD 2 ND FLOOR, TRANSPORT CORPORATION, G-BLOCK, SHOPPING COMPLEX, SECTOR-23, SECTOR-20, NOIDA-201301 NOIDA-201301 (UP) DISTT. GAUTAMBUDH NAGAR (UTTAR PRADESH) (PAN: AAATU3009M) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. AMIT JAIN, SR. DR RESPONDENT BY : SH. RAKESH GARG, ADV. DATE OF HEARING : 16-5-2016 DATE OF ORDER : 01-06-2016 ORDER PER H.S. SIDHU, J.M. THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 25.6.2012 OF LD.CIT(A), NOIDA PERTAINING TO ASSESSM ENT YEAR 2007-08 ON THE FOLLOWING GROUNDS:- 1.1 THE LD. CIT (A) HAS ERRED ON FACTS AND IN LAW IN' CANCELLING THE ORDER DATED 24.03.2009 PASSED BY THE ACIT (TDS,), NOIDA A ND IN DIRECTING THAT PROVISIONS CONTAINED IN SECTION 194C IS APPLICABLE ON THE PAYMENT MADE BY M/S UP. STATE ROAD TRANSPORT CORPORATION, NOIDA FOR HIRING OF BUSES, IGNORING THE FACT OF THE CASE THAT THE DEDUCTOR COM PANY IS LIABLE TO DEDUCT' THE 'TAX ULS 194-1 AT THE RATE OF 10% FOR HIRING OF BUSES IN VIEW OF AMENDMENT MADE ULS 194-1 W.E.F. 01.06.2007. 1.2 IN DIRECTING SO, LD. CIT(A) HAS FAILED TO APPRE CIATE THE FOLLOWING :- I) SECTION 194-1 (INTRODUCED W.E.F. 01.06.2006) IS APPLICABLE AND THE BOARD CIRCULAR NO. 558 (DATED 28.03.1990) IS, NOT A PPLICABLE AS IT WAS ISSUED PRIOR TO THE INTRODUCTION OF SECTION 194-1. ITA NO. 4899/DEL/2012 2 II) SUB CLAUSE (A) OF SECTION 194-1 CLEARLY MENTIO N 'TEN PERCENT FOR THE USE OF ANY MACHINERY OF PLANT OR EQUIPMENT' AND SEC TION 43(3) PROVIDES INCLUSION OF VEHICLE UNDER PLANT. THUS THE A.O. HAS APPLIED THE PROVISIONS OF SECTION 194-1 READ WITH SECTION 43(3) OF THE INC OME TAX ACT. 2. WE FIND THAT THE TAX EFFECT IN THE REVENUES AP PEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS C IRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S NO APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 3. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE ITA NO. 4899/DEL/2012 3 DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE P RESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 4. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HA VE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALS O OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE STAN DS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/06/2016. SD/- SD/- (O.P. KANT) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 01/06/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR